Auto Sales Rise For Second Straight Month In November, Says Dealers’ Body
Motorcyclists ride past a Maruti Suzuki India Ltd. showroom in Ambattur, Chennai, India, on Friday, Aug. 30, 2019. Photographer: Dhiraj Singh/Bloomberg

Auto Sales Rise For Second Straight Month In November, Says Dealers’ Body

Sales of cars and two-wheelers rose for the second consecutive month in November on the back of a rollover from strong festive sales in the previous month.

Retail auto sales, measured by vehicle registrations, clocked 2 percent year-on-year growth in November, according to data released by the Federation of Automobile Dealers Associations.

Three-wheeler sales recorded the highest growth across categories, followed by two-wheelers—which account for nearly 78 percent of the overall vehicle registrations. Commercial vehicle sales, however, dropped during the month.

A strong spillover demand after the festive season gave an extended cheer to the dealer community, FADA President Ashish Kale said.

Retail sales registered a slight growth on a yearly basis in all segments, except commercial vehicles where demand still continues to be quite weak, he added.

“Agriculture produce now trickling into the markets after the extended monsoon, which delayed the crop, also contributed to the uptick in semi-urban and rural markets,” Kale said.

Dealer inventory, however, remained at the same level for two-wheelers and passenger vehicles. Commercial vehicle dealers reduced their inventory by five days after auto makers reduced additional wholesale billing.

According to FADA, these were the average inventory levels in November:

  • Passenger vehicles: Same as 25-30 days in October.
  • Two-wheelers: Same as 35-40 days in October.
  • Commercial vehicles: Down to 35-40 days from 40-45 days in October.


Dealers continue to remain cautious of the near- and mid-term demand owing to the uncertainties from the transition to Bharat Stage VI emission norms and below normal liquidity and credit confidence among customers as well as dealers, Kale said.

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