The Indian auto industry has experienced a surge in demand during the ongoing festive season, with the second week of October (October 10–October 16) witnessing major improvement in vehicle registrations across several segments. According to a report by BNP Paribas India, this rebound in sales outperformed the growth observed in the first week of the festive period, signaling a positive trend for the sector.
Two-wheelers (2Ws) recorded mid-single-digit growth compared to the same period during last year’s festive season (October 22–October 28). Mopeds, on the other hand, showed even stronger performance, achieving low double-digit growth, indicating robust consumer demand.
Passenger vehicle (PV) sales, while still in decline, saw a slower rate of decline week-on-week, showing signs of stabilization. Three-wheeler (3W) registrations decreased by low-single digits, while tractor registrations suffered a more significant drop, declining by mid-double digits.
The report suggests that these figures may be subject to upward revision as more data becomes available, with week-over-week growth surpassing historical averages. This indicates a recovery in the auto sector’s performance during the festive season, traditionally a crucial period for vehicle sales in India.
Looking ahead, the report projects year-on-year (YoY) growth for the entire festive season to reach 13% for two-wheelers, 19% for mopeds, 6% for passenger vehicles, 15% for three-wheelers, and a 6% decline for tractors, based on current trends.
While e-commerce sales in the second week grew at a mid-single-digit pace, this marked a slowdown from the 49% growth seen in the first week, suggesting a cooling of urban market demand post-online festive promotions.
In the broader market, two-wheelers demonstrated strong double-digit growth in the second quarter of FY25, while three-wheelers grew at a high single-digit rate. Despite this, original equipment manufacturers (OEMs) experienced mixed results in terms of revenue and margins during the July-September period, with two-wheelers outperforming other segments.
Domestic sales of passenger vehicles in September reached 3,15,689 units, slightly down from 3,16,908 units in the same period last year, according to data from the Society of Indian Automobile Manufacturers (SIAM).
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