Indian Auto Retail Sees Record October Surge Amid Early Festive Demand
Date
11/6/2024 2:12:28 PM
(MENAFN- KNN India)
New Delhi, Nov 6 (KNN) Indian automotive retail sales surged 32.4 per cent in October, driven by festive season demand and a strong showing in the sports utility vehicle (SUV) segment, according to data released by the Federation of Automobile Dealers Association (FADA) on Wednesday.
Dealers reported sales of 483,159 units during the month, compared to 364,991 units in the same period last year.
The earlier onset of the festival season, which traditionally marks an auspicious period for major purchases in India, contributed significantly to October's performance.
While the festive period began in early October this year, as opposed to mid-October in 2023, the boost in retail sales contrasted with flat or marginally declining wholesale figures from manufacturers to dealers, with SUV sales emerging as the sole growth driver.
Despite the robust retail performance, industry concerns persist regarding elevated inventory levels.
FADA reported that while average inventory days decreased by five days in October, current stock levels remain at 75-80 days, substantially higher than the recommended 30-day threshold.
This overstocking situation is expected to sustain discount offerings through the remainder of the year.
The composition of unsold inventory has been shifting, with FADA noting an increasing proportion of SUVs among the stockpiled vehicles, though small cars continue to constitute the majority.
Industry analysts attribute the delayed purchasing patterns to adverse weather conditions, including extreme heat and heavy rainfall between April and September, which deterred showroom visits and prompted customers to postpone purchases in anticipation of festival season discounts.
FADA has announced plans to release a comprehensive 42-day retail sales report on November 14, encompassing both October and November figures, to account for the varying festival dates between 2023 and 2024.
(KNN Bureau)
MENAFN06112024000155011030ID1108857988
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.