Car Sales Increase in October Due to Festive Season

Festivals like Navaratri and Diwali contribute to high car sales in October. However, high inventory level at dealerships continues to be a major concern. According to data from the industry body Federation of Automobile Dealers Associations (FADA), the passenger vehicle (PV) retails grew 32.38% y-o-y at 483,159 units in October from 364,991 units in the same month last year.

October witnessed the convergence of two major festivals, Navaratri and Diwali, both occurring in the same month. These festivities traditionally account for 30–35% of total annual auto sales. With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint," said C S Vigneshwar, President, FADA.

Vigneshwar further states, "Dealers highlighted that aggressive offers, attractive schemes and new model introductions further stimulated demand.”  Enhanced vehicle availability and strong market interest, especially for SUVs and new products, also contributed to the exceptional sales FADA noted that the rural market played a major role in driving growth with the government's announcement of an increase in the minimum support price (MSP) for Rabi crops further boosting market sentiments.