Indian auto market achieves highest-ever sales in November 2023, FADA Reports

In a historic feat for the Indian automotive sector, November 2023 witnessed the highest-ever vehicle sales, reaching an impressive 28.54 lakh units. The Federation of Automobile Dealers Associations (FADA) released data, highlighting the robust performance driven by festive demand and positive market sentiment.

Customers across diverse segments contributed to the purchase of 28.54 lakh units in November, surpassing the previous record of 25.69 lakh units set in March 2020. This milestone underscores the sustained positive sentiment in the market.

India has recently become the world’s third-largest market in terms of sales, trailing only behind China and the United States. The automotive sector has exhibited exceptional strength throughout the year, with November standing out as a particularly significant month.

Two-wheeler sales peaked at 22.47 lakh units, surpassing the previous record set in March 2020. Similarly, passenger vehicles (PVs) or cars achieved a new pinnacle at 3.6 lakh units, surpassing the previous best figure recorded in March 2020.

The surge in sales is attributed to the festive period of Dhanteras and Diwali in November. Additionally, the onset of the marriage season in many parts of the country acted as a catalyst for increased vehicle purchases.

FADA President Manish Raj Singhania shared insights on the remarkable performance, stating, “November ’23 witnessed a YoY growth of 18 percent and MoM growth of 35 percent. Two-wheelers, three-wheelers, and passenger vehicles showed growth of 21 percent, 23 percent, and 17 percent, respectively, on a YoY basis.”

However, Singhania highlighted that tractor and commercial vehicle sales experienced a decline of 21 percent and two percent, respectively.

While celebrating the record-breaking sales, FADA acknowledged potential challenges in the form of weather conditions affecting rabi cultivation. A press statement from FADA expressed concern, stating, “Severe rains and hailstorms in west and south India are expected to dampen rabi cultivation, which is already experiencing slow sowing and low reservoir levels, potentially impacting the final crop output.”

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