Vehicle Sales Surge in India with 11% Growth in November

Retail vehicle sales in India grew by 11.21% in November, driven mainly by two-wheeler demand. Despite a decline in the passenger vehicle segment, rural markets and festive season extensions contributed to growth. The Federation of Automobile Dealers Associations noted challenges in the commercial vehicle segment.

India's retail vehicle sales surged by 11.21% to reach 32,08,719 units in November, compared to 28,85,317 units the previous year, according to the Federation of Automobile Dealers Associations (FADA). The rise was primarily driven by two-wheeler demand, despite challenges in the passenger vehicle (PV) sector.

FADA reported a significant 15.8% growth in two-wheeler sales, totaling 26,15,953 units, largely due to a festive season spillover. However, the PV sector witnessed a 13.72% decline with 3,21,943 units sold, impacted by subdued marriage season sales and limited new launches.

The commercial vehicle sector also experienced a downturn, recording a 6.08% decline. External factors like elections and industry slowdowns contributed to this trend. Despite mixed near-term outlooks, FADA maintains a cautiously optimistic view, anticipating potential growth due to favorable macroeconomic conditions.

(With inputs from agencies.)