Click it and Unblock the Notifications
Diwali 2024 Sees Record Car Sales In India With 4.25 Lakh Registrations
Car manufacturers in India are experiencing a significant boost in sales during the Diwali 2024 season, despite an otherwise slow year. According to Vahan data, passenger vehicle registrations have reached 4,25,000 units by October 29.
This surpasses the previous record of 3,99,112 units set in January 2024. If the current daily registration rate of 14,732 units continues, there is potential to reach 4.5 lakh units by the end of the month.
The surge in registrations is largely due to the alignment of major festivals like Navratri, Dussehra, Dhanteras, and Diwali within October this year.
Typically spread over two months, these festivities created a concentrated period of high demand for vehicles. This unique occurrence has led to a significant increase in sales for carmakers like Maruti Suzuki and Tata Motors.
Festive Season Boosts Car Sales
Maruti Suzuki has reported a 14 percent year-over-year increase in festive sales volumes from Shradh to Diwali. The company aims to deliver at least 2 lakh vehicles this month while reducing network inventory to around 30 days by month-end. Additionally, Maruti Suzuki's rural market performance outpaced urban areas in the second quarter.
Tata Motors also experienced a substantial rise in sales during this festive period. A spokesperson mentioned that October registrations increased by 30 percent compared to last year. On Dhanteras alone, Tata Motors plans to deliver over 15,000 vehicles due to strong demand across their portfolio.
Dealer Inventory and Market Sentiment
Dealers have seen a positive shift in sentiment as registrations gained momentum in the last week of October. Sanjay Thakker from Landmark Cars noted that off-take has increased across all brands. The month started moderately but ended with strong market momentum and healthy sales figures.
At the beginning of the festive season, dealer inventories ranged between 7,50,000 and 8,00,000 units. With robust deliveries in the last week of October, retail registrations are expected to exceed wholesale volumes by 70,000 units for the first time in five months. This will help dealerships reduce stock levels significantly.
Record-Breaking Registrations Expected
The current figure of 4.25 lakh units includes private cars and cabs listed on Vahan's portal. Monthly vehicle registrations in 2024 have averaged around 3,33,000 units—5 percent higher than last year's monthly average—bringing year-to-date registrations to an impressive total of 33 lakh units.
In comparison, total passenger car registrations reached 38 lakh units in 2023 with the final two months contributing a notable 6.5 lakh units.
This positive trend indicates strong demand and healthier inventory levels heading into the festive season. However, Vangaal cautions that true market conditions will only become apparent during January-March when seasonal impacts subside.
Continue with Google