Diwali 2023: Will the upcoming festive season be a game changer for auto space?

livemint.com:

₹11,901.85, hit on March 28, 2023. While they achieved record-high wholesale dispatches of passenger vehicles (PVs) in October, showrooms are now dealing with unprecedented inventory levels, raising concerns for both dealerships and manufacturers. According to FADA, the Navratri period saw a surge in bookings driven by the introduction of new models, particularly SUVs, and attractive consumer offers.

Vehicle registrations during Navratri, as a result, soared 18%, an all-time high, surpassing the highs previously recorded in 2017. However, the impact of local elections and market saturation meant that the festive spirit didn’t translate uniformly into sales across all regions, it said. Passenger vehicle registrations spiked 6.5% in the 10-day Navratri period (from 15-24 October) year-on-year to 140,000 units, data released by FADA showed.

Registrations in October at 354,000 units were up 6.5 percent from September, but down 1.36 percent from a year earlier. However, it may be noted that, unlike last year, this October had a 15-day period at the beginning considered inauspicious for big-ticket purchases. Overall, total auto sales rose 8 percent in October on a MoM basis.

Total auto sales in October stood at 21,17,596, from 18,82,071 sold in September. Two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles expanded by 15 percent, 2 percent, 7 percent, 15 percent, and 10 percent, respectively, from the previous month. On a YTD basis, all constituents in the Nifty Auto index gave positive returns with Tata Motors jumping the most, up 66.5 percent, followed by Bajaj Auto, up almost 50 percent and TVS Motor, up 48 percent.