- Sales of all vehicles grew 28.8% over the recently concluded holiday season compared to last year, according to a FADA report.
- As of the pre-Covid holidays of 2019, a growth of 6% has been recorded.
- The PV segment had its best year in a decade, outgrowing the 2020 numbers by 2%, the FADA report said.
The recently concluded 42-day festive season saw the best-ever auto sales in the past four years, according to a report from the Federation of Automobile Dealers Associations (FADA).
Sales of all vehicles showed 28.8% growth for the period, compared to the same last year – beating the pandemic, as well as the pre-pandemic blues that have haunted the sector since 2019.
“Festive’22 applauds the automotive industry as for the first time customers from each category came out in droves and participated in festive purchases, making it the best in four years. As previously expected, the PV segment had its best year in a decade, outgrowing the 2020 numbers by 2%,” said Manish Raj Singhania, president of FADA.
Singhania said total retail sales were up 6% compared to pre-Covid holidays of 2019. Analysts had expected a good holiday season, citing an early holiday season compared to last year.
For the month of October, car sales grew 48%, the report said. In October, where two major festivals took place, the tricycle segment showed the largest growth.
“With both Navratri and Deepawali falling sharply in one month, the month of October saw double dealer traffic numbers. Apart from this, new launches and good customer schedules also played a vital role in helping to recover demand.” Singhania added.
Source: FADA Research
Two-wheelers reported year-over-year growth of over 26% during the holiday season and three-wheelers reported the highest growth at 68%. Commercial vehicles, passenger cars and tractors reported growth of 29%, 34% and 30% respectively from 2021.
Holiday sales in the past four years
Source: FADA Research
Sales could fall in the next two months
While the auto industry has had a great festive season, sales could fall over the next two months for a variety of reasons, including customers waiting for new launches next year, price hikes as manufacturers adopt new manufacturing standards, and more.
FADA has said in its report that it remains “cautious” as the auto industry approaches the end of the year. Tata Motors has already announced a price increase for passenger cars from November 7.
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