Navratra Sales Boost But Rural India Slows: Auto Sector Insights

Two-wheeler sales improved during Navratras, despite muted rural growth. Passenger vehicles saw slight booking increases, while tractor demand is recovering. Inventory levels are high, and the festive season is critical for clearance. Commercial vehicles faced challenges, though fleet utilization improved.

Retail sales during the Navratras marked a single-digit growth in the two-wheeler segment across regions, even as rural sales remained lukewarm, as revealed by a report from Motilal Oswal Financial Services. The document, published Thursday, delved into the trending nuances within the automobile sector.

The report highlighted a modest uptick in inquiries and bookings for passenger vehicles, with Maruti Suzuki and Tata Motors particularly seeing improvement. A noteworthy varied demand trend emerged in October: a positive momentum for two-wheelers and tractors, coupled with moderate demand for both passenger and commercial vehicles.

Two-wheelers performed better, achieving a 4-5% year-on-year festive season growth, which was partially constrained by a high base. Notably, while tractor volumes are witnessing recovery and are expected to flourish in the second half of the fiscal year, commercial vehicle demand remains sluggish, with a 5% year-on-year volume decline predicted.

(With inputs from agencies.)