November Auto Check: Compact SUVs Drive Growth As Demand Stays Robust Post Festive Season
Auto sales in India rose 2.14% on the year to 33.01 lakh units in November as demand growth remained stable post festival season, according to the Federation of Automobile Dealers Associations. Price cuts post GST 2.0 implementation continued to drive customers to the showrooms.
The passenger vehicle inventory for the month improved to 44–46 days from 53–55 days, as per FADA, a sign that demand was on the uptick. Amongst PVs, compact SUVs and better model availability drove growth. The segment saw Maruti Suzuki lead with 39.4% share, followed by Mahindra at 13.7% and Tata Motors at (13.2%.
Two-wheeler sales slipped to 19.16% in November to 25.46 lakh units. The annual decline in this category is 3.10%.
"Two-Wheelers, while reporting a modest 3.1% YoY decline, must be viewed in context. A significant retail shift occurred due to festive buying in October, combined with delayed crop payments and uneven supply of preferred models. Encouragingly, dealers continue to report strong walk-ins linked to GST sentiment and healthy marriage season demand," said FADA President C S Vigneshwar.
Three-wheeler sales grew 31.58% on the month to 1.33 lakh units as e-rickshaw and e-rickshaw with cart sales increased significantly. Meanwhile, sales in this category rose 23.67% on annualised basis.
Commercial vehicle sales moderated significantly in November as sales in light-commercial vehicle and medium commercial vehicle categories declined.
Countering the trend, sales grew 3.28% on the month to 28,659 in cthe heavy-commercial vehicle category.
However, commercial-vehicle sales advanced 19.94% on the year to 94,935 in November. Select infrastructure activities, freight movement, tourism, mobility, government tender cycles, and GST reforms supported the growth, according to Vigneshwar.
Cautious Optimism To Prevail
Improving rural sentiment and macro indicators are favourable for near-term outlook. Rabi sowing season started on a strong note. Cooler-than-normal Winter across Northern and Central India will increase the need for mobility and logistics.
Dealers are also confident of strong demand because of a rise in enquiry calls, expected marriage-season purchases, and better stock availability. However, some dealers are expecting a softness in urban premium segments.
Nevertheless, the broader market tone remains measured, yet optimistic, according to FADA.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
