Automobile Desk: The month of October has proved to be of mixed trends in the country's automobile market. According to the latest report of the Federation of Automobile Dealers Association (FADA), the total retail sales of the Indian auto sector during October declined by 23.8 percent on an annual basis. During this period, a total of more than 31.72 lakh vehicles were registered. Statistics show that the main reason for this decline in sales is not only the disinterest of the customers but also the change in the dates of the festive season this time.
Last year, both the major festivals of Navratri and Diwali had arrived in the month of October. In contrast, this year only the festival of Navratri fell in October, while the dates of Dhanteras and Diwali are scheduled in the first week of November. Apart from this, the sales base also remained quite high due to the tax concessions implemented at the end of September last year. Due to the natural tendency to postpone purchases during festivals, many buyers have rescheduled the delivery of their new vehicles for the month of November.
If we look at the category wise figures, there was a decline of 28.35 percent in the retail sales of two-wheelers and this figure came down to 23.21 lakh units. The demand for two-wheelers in rural areas declined by 33.97 percent, while in urban areas it saw a decline of 20.77 percent. Talking about the passenger vehicle (car) segment, there was a slight decline of 4.23 percent, with total sales being 5.08 lakh units.
Amidst this slowdown, alternative fuel powered vehicles have set a new record in the Indian auto industry. In October, the combined share of CNG, hybrid and electric cars increased to 41.83 percent. At the same time, the market share of cars with conventional petrol engines declined to 41.6 percent. This is the first time in the history of the market that CNG and green mobility options together have overtaken petrol models in percentage of total sales.
Record speed was seen in the electric vehicle segment. A record 3.55 lakh electric vehicles were sold across the country during October, showing a strong growth of 11.5 percent over the same period last year. There was also a positive mood in the commercial vehicle segment, where sales increased by 2.29 percent to 1.15 lakh units. Apart from this, three-wheeler segment grew by 3.97 percent to 1.41 lakh units and tractor segment grew by 3.10 percent to 79,285 units.
Vehicle dealers are hopeful that the auto market will be seen in its full glory again in the month of November. Due to Dhanteras on 6th November and Diwali on 8th November, the process of booking and delivery in showrooms is very fast. According to FADA, initial trends indicate that vehicle registration figures may set a new record this festive season. The business of the upcoming December and January months will largely depend on the availability of year-end discounts offered by companies and new model launches.