November 2024 was a bit of a mixed bag for the Indian auto industry with cumulative sales of 32,08,719 vehicles – a 11.12 per cent growth over the same month last year. The sales growth were primarily driven by the two-wheelers, three-wheelers and tractors segment with commercial vehicle and passenger vehicle sales declining after a strong showing in October 2024.
“While November was initially expected to build on its prior momentum, particularly due to the marriage season, dealer feedback suggests that this segment underperformed overall expectations. Although rural markets offered some support, primarily in the two-wheeler category, marriage-related sales remained subdued. The late occurrence of Deepawali at the end of October also caused a spillover of festive registrations into November, affecting the month’s sales trajectory,” said C S Vigneshwar, President, Federation of Automobile Dealers Associations (FADA).
Two-wheeler sales were up 26.67 per cent over the festive month of October 2024.
Two-wheeler sales continued to see strong demand in the post-Diwali period with sales growing 26.67 per cent over the festive month of October 2024. With 26,15,953 units sold, the highest in the month, the segment also posted a 15.80 per cent gain over November 2023. FADA attributed the strong growth to a spill-over of the festive season while also reporting that demand for new two-wheelers fell short of the anticipated wedding season demand.
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The festive spillover however did not seem to extend to the passenger vehicle segment which saw sales drop a sharp 33.37 per cent compared to October 2024. Sales were subdued compared to November 2023 as well with the segment sales shrinking by 13.72 per cent year-on-year. Total sales for the month amounted to 3,21,943 units – down from 4,83,159 units in October 2024.
Passenger vehicle sales were down a notable 33.37 per cent over October 2024, 13.72 per cent over November 2023.
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“The PV segment faced notable headwinds, with sales declining 33.37% MoM and 13.72% YoY. Dealers cited weak market sentiment, limited product variety and insufficient new launches, compounded by the shift of festive demand into October. Although rural interest was present, it failed to significantly improve sentiment,” said Vigneshwar.
Moving to other segments, three-wheelers reported a year-on-year growth of 4.23 per cent with 1,08,337 units sold. However, sales were down a notable 11.81 per cent compared to October 2024. Commercial vehicle sales meanwhile were in a similar boat as passenger vehicles with sales declining 6.08 per cent compared to November 2023 and 15.85 per cent compared to October 2024.
Tractor sales were up month-on-month and year-on-year though overall sales in FY 2025 were down compared to FY 2024.
Tractor sales meanwhile were on a growth trajectory with a 29.88 per cent gain over November 2023 with 80,519 units sold. Month-on-month sales meanwhile were up by 24.97 per cent.
Regarding the year-to-date performance in FY 2025, the overall industry reported a 10.97 per cent growth over FY 2024, with 1,79,92,631 units sold from April to November 2024. The two-wheeler segment reported cumulative sales of 1,43,59,744 units – a growth of 14.04 per cent over the previous fiscal while passenger vehicle sales were up 4.19 per cent over FY 2024 with 26,97,934 units sold. Three-wheeler sales were also in the positive reporting a gain of 7.61 per cent. However, commercial vehicle and tractor sales were down compared to the previous financial year by 0.29 per cent and 3.29 per cent respectively.
For December, FADA maintained a cautiously optimistic outlook citing that year-end discounts and promotions could help push demand for new vehicles in the month.
