Festive cheers for auto firms as Navratri sales up 15.6% over pre-Covid levels

Automakers saw a blockbuster start to the festive season this year, clocking in 70.43% growth in passenger vehicle sales during Navratri 2022 on a year-on-year basis on a low base and increased demand for cars amid the easing Covid situation in the country. The total auto retail sales grew 57.46% YoY and surpassed the figures for the pre-Covid period of 2019 Navratri, recording a 15.68% rise in sales.

Passenger vehicle (PV) sales also recorded 58.66% growth over the pre-Covid period (Navratri'19) and 27.95% growth over the Navratri 2020 period, shows the FADA data.

The data shared by the national body of auto dealers FADA (Federation of Automobile Dealers Associations) shows the overall retail sales increased by over 57% to over 5,39,227 compared to Navratri 2021, while 26.65% as compared to Navratri 2020 sales.

"Navratri retails clearly shows that customers were back in showrooms with all guns blazing after a gap of 3 years. In fact, the 2W category which was continuously showing weakness when compared to pre-Covid months, also registered single-digit growth (3.7%)," says FADA president Manish Raj Singhania.

The passenger vehicle category saw total sales rising to 1,10,521 during this year Navratri as compared to 64,850 units sold last year and 86,380 units sold a year before that. The auto companies had sold 69,657 vehicles during the Navratri period in 2019.

FADA has released the Navratri auto retail figures for the first time. All categories showed high growth with 2W, 3W, CV, PV and tractors increasing by 52%, 115%, 48%, 70% and 58%, respectively.

When compared to Navratri’19, which was prior to Covid hit India, all categories showed a positive momentum. As compared to Navratri 2019, the two-wheeler, three-wheeler, commercial vehicles, passenger vehicles and tractors sales grew by 4%, 31%, 37%, 59% and 90%, respectively.

As per Singhania, the trend is expected to remain the same during Diwali as well and apart from passenger vehicle sellers, two-wheelers could also see high sales.

Last month's sale data shared by the retailers' body show healthy growth of 11% on a year-on-year basis despite the inauspicious period of Shradh. FADA represents over 15,000 automobile dealers having 26,500 dealerships, which employ 4 million at dealerships and service centres.

Of the total vehicle sales, PV sales grew 9.71% YoY. This segment grew 44% when compared to Sept 2019, a pre-Covid month. Two-wheeler, three-wheelers and commercial vehicles also recorded high growth of 9%, 72% and 19%, respectively, in September. Except for tractors, which decreased by 1.5%, other categories were in the green.

As per FADA, the overall waiting period still continues to range between 3 months to 24 months, especially for SUVs and compact SUVs. In its outlook, it said October will see auto retail on high grounds, with 24 days of the festive season of the total 31 days. Dealers also anticipate this to be the “best festive in a decade” for the PV segment.