Sales of automobiles at dealerships jumped the most in 18 months as demand spiked, more so for two-wheelers, during the festival season in November.
Retail sales, measured by vehicle registrations, rose 32.8% over the previous month in November, according to data on the Vahan portal of the Ministry of Road Transport and Highways.
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Auto registrations, however, fell 2.8% over a year earlier to 18.23 lakh units in November, according to the data collated from 1,493 regional transport offices in 33 states and union territories. To be sure, some of the October-end numbers are likely to have spilled over to November.
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Two-wheeler sales spiked matching the November 2020 levels as festive demand overcame higher prices and costlier fuel. All other categories grew in single digit.
Total retail sales, however, remained below the pre-pandemic level of March 2020 as price hikes by automakers, and costlier petrol and diesel have increased the cost of ownership. Passenger cars, however, remained above the pre-Covid level for the fifth straight month on preference for personal mobility.
Inventory
Two-wheeler makers eased the pressure after aggressively pushing inventory—measured as the difference between retail sales and factory-gate shipments—in September and October. Makers of motorbikes and scooters saw the stock with dealerships decline.
Registrations improved sequentially for passenger cars but inventory addition slowed.
Two-Wheelers
Retail sales of two-wheeler makers tracked by BloombergQuint surged 43.9% sequentially in November. The demand, however, was still lower than a year earlier.
Passenger Cars
Passenger car retail sales rose 5.3% sequentially but fell year-on-year, in line with factory-gate shipments as the semiconductor shortage continues to hurt output. Tata Motors Ltd. outperformed peers because of its alternative chip-sourcing strategy.
Commercial Vehicles
Commercial vehicle sales slowed sequentially but remained higher than a year earlier, aided by a low base.
Tractors
After a sluggish October, retail demand rose 7% sequentially in November.
Sales, however, remained below the November 2020 levels because of weak rural purchasing power. Tractors were the first to recover in 2020 as lockdowns were eased.
Unseasonal rains in some parts of the country delayed the sowing season. A near-normal monsoon and sufficient water in reservoirs is expected to boost sales in the rabi or winter cropping season.
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