Record shattered: Indians buy more vehicles in November than any previous month
- Festivities and start of the marriage season in many parts of the country helped November emerge as a very strong month for sales of vehicles.
November emerged as the best month in terms of vehicle sales ever in the history of Indian automotive market with as many as 28.54 lakh units being bought by customers across segments and categories. The previous best of 25.69 lakh units was registered in March of 2020. The data from The Federation of Automobile Dealers Associations (FADA) released on Wednesday once again underlines the positive sentiment in the market here.
India recently overtook Japan as the world's third largest market in terms of sales and is now only behind China and the United States. While 2023 has so far been an extremely strong year for the automotive sector, November will be rememberd as a momentous month with two-wheelers and passenger vehicles (PVs) particularly faring strongest.
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Sales of two-wheelers last month peaked at 22.47 lakh units, bettering the previous best of 20.7 lakh units registered in March of 2020. Similarly, sales of PVs or cars touched a new high of 3.6 lakh units, eclipsing the previous best figure of 3.57 lakh units in March of 2020.
The key driving force behind the surge in sales was that the festive period of Dhanteras and Diwali were in November this year. This combined with the marriage season beginning from November in many parts of the country acted as a catalyst. “November’23 witnessed a YoY growth of 18% and MoM growth of 35%. 2W, 3W, and PV showed growth of 21%, 23%, and 17% respectively on a YoY basis," said FADA President Manish Raj Singhania, adding however that tractor and commercial vehicle sales fell by 21 per cent and 2 per cent, respectively.
FADA also notes that the impact of weather on rabi cultivation may have an impact on vehicle sales moving forward. “Severe rains and hailstorms in west and south India are expected to dampen rabi cultivation, which is already experiencing slow sowing and low reservoir levels, potentially impacting the final crop output," a press statement from FADA highlights. “This may also lead to increased inflation, making daily essentials more expensive and thus affecting vehicle sales in the near term." FADA has urged PV OEMs in particular to announce attractive schemes to support year-end buying and reduce inventory at dealerships.