Overall car sales in India increased 20% year on year in September, with new records set in the two-wheeler (2W) and three-wheeler (3W) categories ahead of the expected holiday surge.

September’s Auto Retail celebrated a 20% YoY leap, continuing the momentum from the previous month while marking a 3.5% MoM increase, seamlessly transitioning into the festive period’s sweet spot set to unfold over the next 42 days,” said FADA President Manish Raj Singhania.

The rise was constant across virtually all vehicle categories, with 2W increasing by 22%, PV increasing by 19%, 3W increasing by 49%, and CV increasing by 5%. Tractor sales, on the other hand, fell 10% in September.

The 3W sector maintained its robust performance, with successive record-breaking retail sales. In September, 3W sales reached an all-time high of 102,426 units, representing a 49% year-over-year and 5% month-over-month increase, surpassing the 100,000-unit mark.

In comparison to pre-COVID benchmarks, car sales increased 14%, while the 2W category increased 2% for the first time, perhaps signaling the start of a rural market recovery.

The 2W segment witnessed positive shifts as the festive season approaches. With the introduction of new models and attractive promotional offers, demand increased, especially in rural areas, fostering improved market sentiments. The higher demand also came on the back of an increase in customer foot traffic and a generally favorable response from the market. Also, improved stock availability compared to the previous year and a positive reception to recently introduced entry-level products created an optimistic outlook for the upcoming festive season. As the festive season unfolds, a wave of anticipation and enthusiasm is expected to sweep across the automotive sector. In the 2W segment, although the initial half of the month might be quiet due to the Shraddh period, the aura of upcoming festivals like Durga Puja and Navratri is predicted to brighten the sales atmosphere, with enhanced customer sentiment and competitive pricing playing pivotal roles. The introduction of new models will further add to the optimism,” FADA said.

According to the statistics, inventory levels for passenger cars (PVs) have reached an all-time high, reaching the 60-65 day mark, as dealers prepare for a busy 42-day holiday season.

As inventory levels for passenger cars (PVs) have reached an unprecedented 60-65-day barrier, OEMs must take care to prevent excessive inventory building, according to FADA. This strategy promises a thriving and stable business over the approaching holiday season. The favorable monsoon patterns, with India, getting 94% of the projected rainfall, set a pleasant tone for the holiday season. As we go beyond the Shraadh period on October 14th, the market is preparing for the start of Navratri, which marks the beginning of a 42-day holiday season. With these encouraging data, FADA is hopeful, predicting a prosperous Christmas season for the Indian auto retail industry.