The festive season in India has provided a significant boost to the auto sector, with various segments showing promising growth in sales during the second week of the festive period (October 10-October 16). According to a report by BNP Paribas India, two-wheelers (2Ws) registered mid-single-digit growth compared to the same period last year, while mopeds experienced a notable double-digit increase. Although passenger vehicle (PV) sales declined, the drop was smaller compared to previous weeks, indicating signs of recovery.
Three-wheeler (3W) registrations saw a minor decline in low single digits, while tractor sales fell by mid-double digits. However, the week-over-week improvement in sales across various segments was better than historical averages, suggesting a strong recovery trend. If the current momentum continues, year-on-year (YoY) growth during this year’s festive season is expected to reach 13% for 2Ws, 19% for mopeds, 6% for PVs, 15% for 3Ws, and a decline of 6% for tractors.
The report also highlighted a moderation in e-commerce sales growth, which rose by mid-single digits in the second week, down from the 49% growth seen in the first week. This suggests that urban markets may be stabilizing after the initial surge in online festive shopping.
In the broader context of FY25, two-wheelers experienced strong double-digit growth in the second quarter, and three-wheelers grew by high single digits. However, the original equipment manufacturers (OEMs) reported mixed results in terms of revenue and margins for the July-September period, with two-wheelers outperforming other segments. In September 2023, domestic PV sales were slightly down compared to the same month last year, standing at 3,15,689 units, according to SIAM data.
Overall, the festive season is proving to be a key driver for the Indian auto sector, particularly for two-wheelers and mopeds, as demand continues to recover.