Vehicle retail sales in India surge 21.14% in December, two-wheeler segment leads growth

economictimes.indiatimes.com:

growth of 21.14% over 1,643,514 units sold in the same period a year earlier, shows data collated from the VAHAN portal of the Ministry of Road, Transport & Highways (MoRTH) by the Federation of Automobile Dealers Association (FADA).
Manish Raj Singhania, President, FADA, vehicle registrations across categories increased in December. In the two-wheeler segment particularly, retail sales remained strong driven by demand during the marriage season.

The distribution of harvest payments to farmers, which enhanced purchasing power, availability of a wide range of models and variants, coupled with favourable weather conditions and a generally positive market sentiment, contributed to robust growth”, Singhania informed. Sales of two-wheelers rose by 27.57% to 1,449,693 units in the month under review.
He added, enhanced product acceptance, particularly among the youth, and lucrative financial options, along with the anticipation of price increases in January 2024, spurred purchases.

Average inventory of two-wheelers stands between 15-20 days.

In the passenger vehicle segment sales went up by 2.65% to 293,005 units in December. SUVs in particular saw strong demand, with extended waiting periods for key models. This surge was fuelled by aggressive year-end promotions and the introduction of new models.

However, Singhania said, a significant concern is the high inventory levels, reflecting over-supply. “This ongoing issue of high PV inventory, despite a slight decrease by the year's end, remains a critical area for OEMs to address, emphasizing the need for further moderation in inventory management”, he said. Average stocks of passenger vehicles in the network currently range between 55-58 days.