Recovery in full speed: Cars, SUVs record best-ever November sales

After a fall in October, sales of cars and SUVs have swung back in the green - registering their best-ever numbers for November, following an upbeat demand during the Diwali period.

Retail sales of passenger vehicles (car, SUV and vans) for November stood at 291,001 units, as per data shared by the Federation of Automobile Dealers Association (FADA), registering a growth of 4 percent compared to November 2019.

Retail sales, which are bought by the final customer, are the real barometer of market demand as they represent the actual vehicle registration done by the regional transport offices (RTOs).

Pan-India retail volumes are estimated to be slightly above 330,000 units November, as per Maruti Suzuki India. Andhra Pradesh, Telangana, Madhya Pradesh and Lakhshadweep which make up 15-20 percent of the retail volumes are not part of the central government’s Vahan portal from where FADA sources the retail volumes.

FADA also shared retail volumes for the entire 42-day festive period which started with Navratri in October and ended with Diwali in November. The industry saw a 14 percent increase in retail volumes to 431,597 units as against the same 42-day period last year.

New launches such as Kia Sonet, Mahindra Thar, Hyundai i20, Toyota Urban Cruiser provided the boost to retail sales.

The rise in retail volumes follows the 9 percent growth in wholesale volumes recorded in the same month at nearly 287,000 units. Wholesales are those which are sold by the manufacturer to their dealers. The Society of Indian Automobile Manufacturers (SIAM) which compiles the wholesale data will release the November sales numbers in a few days.

Vinkesh Gulati, president, FADA said, “Automobile industry has seen one of the best recovery rates since unlocking began as November saw positive momentum. New launches especially in the compact SUV segment continued to show good demand in the PV segment.”

Two-wheeler retail sales remained in the red in November like each of the previous months. The segment registered a 21 percent decline in volumes to 1.41 million units during November compared to the same month in 2019. In contrast, wholesales grew by 13 percent to 1.59 million units during the same month.

The two-wheeler segment posted a drop in volumes during the 42-day festive period too. The category saw 6 percent decline in volumes to 1.9 million units during November as against the same month last year.

While for the PV segment inventory days continue to be very low at 25-30 days (usual is 35-40 days) for the two-wheeler segment the inventory days were higher at 45-50 days (usual is 35-45 days).

“With the festive season now over, heavy rains in certain parts of the country leading to crop damage and pent-up demand almost negligible, demand revival now solely depends on exciting year end schemes. If the supply chain issues in the PV segment are controlled, we may see continued growth in December. FADA once again cautions two-wheeler makers and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued,” said a note from FADA.