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The Federation of Automobile Dealers Associations (FADA) has said that retail sales of automobiles in the domestic market saw a 7.73 per cent year-on-year decline in October 2023 at 21,17,596 units, mainly due to dip in two-wheeler uptake with the inauspicious period of Shraddh affecting new purchases. Retail sales of automobiles in the domestic market stood at 22,95,099 units in October 2022.

According to the data, two-wheeler retail sales were at 15,07,756 units in October 2023, as against 17,25,043 units in the year-ago period, down 12.60 per cent. Similarly, passenger vehicle (PV) retail also declined by 1.35 per cent at 3,53,990 in October 2023, as compared to 3,58,884 units in October 2022. On the other hand, three-wheeler sales were up 45.63 per cent at 1,04,711 units, as compared to 71,903 units in the year-ago month. Tractor retail sales also grew by 6.15 per cent at 62,440 units, as against 58,823 units in October 2022. Commercial vehicles retail sales increased 10.26 per cent in October 2023 at 88,699 units, as compared to 80,446 units in the year-ago month. 

On the outlook, FADA said 'the near-term outlook for the auto sector is a blend of highs and lows as we approach year-end’. It stated that festivities along with harvest season, especially paddy, are expected to boost two-wheeler sales, with optimism fuelled by new schemes and a push towards electrification, despite supply concerns. Commercial vehicle segment is looking at a strong November, with festive and construction activities enhancing demand, alongside anticipated financial schemes. However, it said the PV segment is navigating through a tricky phase. Festive days might spike bookings, yet the shadow of year-end discounts looms over immediate sales.