Two-Wheelers and SUVs Drive India’s October Auto Boom – See the Shocking Growth Numbers!

October 2024 surge in vehicle sales, driven by festive demand and strong rural markets.

October 2024 marked a significant spike in retail vehicle sales in India, rising by 32 per cent compared to the same month in the previous year. This surge can be largely attributed to the overlap of two major festivals, Navratri and Diwali, which historically drive a large portion of annual auto sales. Additionally, positive rural economic conditions and government measures contributed to this growth.

Source: FADA Research
Two-Wheeler and Passenger Vehicle Surge

The two-wheeler segment saw a robust growth of 36 per cent, with over 20.6 million units sold. Hero MotoCorp led the charge, followed by Honda and TVS Motor, with strong rural demand playing a key role. In the passenger vehicle (PV) segment, sales increased by 32 per cent, totaling 483,159 units. Maruti Suzuki maintained its market leadership, benefiting from strong SUV demand and new model launches.

Strong Rural Demand and Festive Boost

Rural markets were pivotal to this growth, supported by good monsoon conditions and the government’s increase in minimum support prices for rabi crops. These factors bolstered consumer sentiment and led to higher sales, especially in two-wheelers, which are often a barometer of rural economic health.

Inventory and Sales Dynamics

While sales soared, there are concerns regarding inventory levels in the passenger vehicle market. Dealer stock levels remained high, hovering around 75-80 days, despite a slight reduction from September. This excess inventory might lead to continued discounts as companies aim to clear their stock before the year’s end.

Commercial Vehicles and Tractors See Modest Growth

The commercial vehicle (CV) sector showed a more modest growth of 6 per cent, while the tractor market grew by 3 per cent. These segments benefitted from agricultural demand and bulk purchases, though challenges in construction and vehicle price hikes affected performance.

Outlook for the Wedding Season

Looking ahead, the automotive sector is poised for continued demand due to the wedding season, with an estimated 4.8 million weddings expected by December. Despite high inventory levels and cautious dealer sentiment, the festive and wedding season promises sustained growth for the auto sector, particularly in two-wheelers and passenger vehicles.