FADA Report 2024: Festive Season Records 42.88 Lakh Vehicle Sales

Key Findings:

1. Record Sales Milestone:
   The 2024 festive season achieved record-breaking sales, with 42.88 lakh vehicles registered, representing an 11.76% year-on-year growth.

2. Two-Wheelers Dominate the Market:
   The two-wheeler segment led the growth, with a 13.79% increase in sales, totaling 33.11 lakh units. Strong demand from rural markets fueled this robust performance.

3. Passenger Vehicles Rebound:
   Passenger vehicles (PV) saw a 7.10% rise in sales, reaching 6.03 lakh units. Contributing factors included pent-up demand and lucrative discounts from manufacturers.

4. Segment-Specific Performance:

   • Commercial Vehicles (CV): Marginal growth of 1.02%, totaling 1.28 lakh units.
   • Three-Wheelers: Sales grew by 6.81% to reach 1.59 lakh units.
   • Tractors: A decline of 1.64%, with sales at 85,216 units.

5. External Influences on Sales:
   Adverse factors like unseasonal rains in South India, particularly in Bengaluru and Tamil Nadu, along with Cyclone Dana in Odisha, impacted sales in these regions, limiting even higher growth potential.

6. Inventory Challenges:
   The report anticipates a reduction in passenger vehicle inventory levels post-festive season. However, FADA advises manufacturers to focus on clearing 2024 stock to ensure dealers maintain an optimal inventory level of 21 days entering the new year.

7. Future Prospects:

   • Commercial Vehicles: Growth expected due to government infrastructure investments.
   • Tractors: Anticipated recovery supported by favorable monsoons and an increased Minimum Support Price (MSP), boosting farmers’ incomes.

Data Notes:

The report excludes data from Telangana and is based on information from 1,368 of 1,430 Regional Transport Offices (RTOs) across India.