India`s festive period retail auto sales grow 12%, dealers' body says
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India's auto sales by dealers to customers grew by about 12% during this year's festive season compared to the previous year, led by two-wheeler sales on the back of strong rural demand, data from a dealers' body showed on Friday.
The Federation of Automobile Dealers Associations (FADA) said festive period sales from Oct. 3 to Nov. 13 came in at about 4.3 million units, compared to last year's 3.8 million units.
However, FADA said the sales fell short of its target of 4.5 million, blaming unusually heavy rains in South India and a cyclone in the eastern state of Odisha.
Indians generally make big-ticket purchases on items like vehicles during the festive season. The festive season kicked off in mid-October last year and lasted until mid-November.
Sales of two-wheelers grew about 14%, while car sales rose 7%, helped by what FADA called "unprecedented discounts."
Indian dealers' car sales rose 32.4% in October, helped by festive demand, especially for sports utility vehicles (SUV), as well as new model launches and offers, but inventory levels remained high, FADA said earlier this month.
Inventory levels are an indicator of demand. High inventory levels had forced automakers to slow down sales to dealers and offer higher discounts as showroom owners grapple with rising levels of unsold cars.
FADA President C S Vigneshwar said he is hopeful that car inventory levels will inch lower through the remainder of the year, but told Reuters it would take at least three months to normalise at the ideal level of 21 days.
