Retail vehicle sales in India rose 11.21 per cent year-on-year in November to 3.21 million units, buoyed by a strong demand for two-wheelers, according to data from the Federation of Automobile Dealers Associations (FADA) released on Monday. Total sales stood at 3,208,719 units, up from 2,885,317 units in November 2023.

Two-wheeler sales jumped 15.8 per cent to 2,615,953 units, compared with 2,258,970 units a year ago, helped by the lingering impact of the festive season, FADA said.

However, passenger vehicle (PV) sales declined 13.72 per cent to 321,943 units, down from 373,140 units in the same period last year.

“The PV segment faced significant headwinds, with marriage-related purchases underperforming expectations despite rural markets offering some support,” FADA president C.S. Vigneshwar said in a statement.

The timing of Diwali in late October pushed some festive registrations into November, affecting the overall sales trajectory, Vigneshwar noted.

He attributed weaker PV sales to subdued market sentiment, limited product variety and fewer launches, which compounded the impact of October’s festive demand.

Dealers also reported high inventory levels of 65-68 days, even after the reduction of about 10 days.

Vigneshwar reiterated FADA’s call for original equipment manufacturers (OEMs) to rationalise inventory levels to avoid deep discounts and ensure a healthier start to 2025.

In the commercial vehicles segment, retail sales dropped 6.08 per cent to 81,967 units from 87,272 units a year earlier.