Passenger Vehicle Sales Decline in November Amid Subdued Wedding Season Demand

Passenger vehicle (PV) sales in November witnessed a sharp 14% year-on-year decline, falling short of market expectations despite an anticipated boost from India’s wedding season. The subdued performance followed October’s record-breaking festive sales. Dealers attributed this slump to weak market sentiment, limited product options, and a spillover of festival demand from late October’s Deepawali celebrations.

Approximately 4.8 million weddings across India were expected to drive demand for PVs and two-wheelers. However, wedding-related sales remained underwhelming, with two-wheeler sales growing only 16% year-on-year, below projections. The commercial vehicle (CV) segment also struggled, recording a 6% year-on-year drop, with factors like older model issues and limited financier support compounding the slowdown.

In contrast, tractor sales surged by nearly 30%, reflecting robust rural demand, while three-wheeler sales rose modestly by 4.2%. Inventory levels for PVs improved slightly, reducing by 10 days, yet remained high at 65–68 days, prompting the Federation of Automobile Dealers Associations (FADA) to urge manufacturers to rationalize stock further.

Notably, Maruti Suzuki, Hyundai, and Tata Motors saw declines of 16%, 14%, and 23% year-on-year, respectively, while Mahindra & Mahindra and Toyota Kirloskar bucked the trend with sales growth of 2% and 13%.

FADA President CS Vigneshwar expressed cautious optimism for December, citing heavy discounts and end-of-year promotions as potential drivers for improved sales. However, challenges like rural market reliance and deferred purchases for new-year models continue to weigh on the industry.