2024 Festive Sales: Indian Auto Industry Grew By 11.76 Per Cent During Festive Period

This year’s festive season saw the Indian automotive industry register quite robust growth, revealed the Federation of Automobile Dealers Association (FADA). A total of 42.88 lakh vehicles were retailed during the 42-day long festive period which starts from the 1st day of Navratri and continues past 15 days post Dhanteras. This is an 11.76 per cent growth over last year’s 38.37 lakh units it retailed during the same period last year. 

Particularly noteworthy was the growth of two-wheeler sales which grew by 13.79 per cent year-on-year growth to reach 33.11 lakh units. This growth was largely driven by increased demand in the rural market. Passenger vehicle sales also grew during the festive period after a lull spell to register 7.10 per cent year-on-year growth with 6.03 lakh units retailed. However, this growth was driven by heavy discounts from OEMs, and pent-up demand from before. 

Despite this positive growth the automotive industry failed to meet the target of 45 lakh units. Unseasonal heavy rainfall in South India, especially in Bengaluru and Tamil Nadu, and Cyclone Dana in Odisha were mainly responsible for the industry’s inability to hit the aforementioned target. 

Now with just 1.5 months remaining in 2024, FADA urges OEMs to focus on liquidating 2024 stock so that dealers can enter 2025 with the ideal 21 days of inventory.