Auto Retail For September Slips In The Red, FADA Pins Hope On Festivities To Boost Demand

Kia dealership

The automotive retail sales numbers for September 2024 show a decline in demand for two-wheelers, passenger vehicles and commercial vehicles. Barring three-wheelers with a flat growth and tractor segment with 14 percent growth, sales have declined both on a month-on-month basis as well as year-on-year basis.

The overall auto retails came at 17,23,330 units, which is a decline of 9.26 percent over last year. This includes 12,04,259 two-wheelers (-8.51% YoY); three-wheelers 1,06,524 units (0.66% YoY); 2,75,681 passenger vehicles  (-18.81% YoY); 62,542 tractors (14.69% YoY) and 74,324 commercial vehicles (-10.45% YoY).

C S Vigneshwar, President, Federation of Automobile Dealers Association (FADA) said, The 2024 southwest monsoon recorded 8 percent above-normal rainfall—the highest in four years—which has boosted Kharif sowing by 1.5 percent YoY. This increase in agricultural productivity has positively impacted rural demand and economic sentiment. Despite the onset of festivals such as Ganesh Chaturthi and Onam, Dealers have reported that the performance has been largely stagnant. This suggests that overall market sentiment during these festive periods has been underwhelming, with a trend leaning towards flat or negative growth. The Shraddh period further impacted sales negatively, leading to a YoY decline in retail sales across various categories.”

He further stated that while discounts and offers have been introduced across segments to stimulate demand, but they have “yet to translate into a significant improvement in sales.”

Vigneshwar said that the two-wheeler sales decline can be attributed to low consumer sentiment, poor inquiries, and reduced walk-ins. Seasonal factors like the Shraddh period, Pitrapaksha, and heavy rains further impacted demand, resulting in delayed purchases and a subdued market environment.

The three-wheeler sales showed marginal growth of 0.99 percent MoM and 0.66 percent YoY, driven by positive customer engagement and increasing demand for e-rickshaw options. However, overall demand remained subdued as many customers deferred purchases in anticipation of the upcoming festive season and heavy rains impacted walk-ins and sales activity.

The commercial vehicle segment reflected a mixed performance, while there was positive sentiment and marginal growth in regions supported by infrastructure projects, overall demand remained weak due to low government spending, extended monsoon delays and seasonal challenges. Despite some improvement in fleet purchases, the market conditions remain subdued.

The passenger vehicle segment has been a case of worry with an alarming trend of declining consumer demand and deteriorating market sentiment. Seasonal factors such as Shraddh and Pitrapaksha, coupled with heavy rainfall and a sluggish economy, have exacerbated the situation, leaving dealers with historically high inventory levels of 80-85 days—equivalent to 7.9 lakh vehicles worth INR 790 billion.

“Given the critical festive season around the corner, FADA urges OEMs to take immediate corrective measures to avoid a financial setback. FADA also calls on the Reserve Bank of India (RBI) to issue an advisory to banks, mandating stricter channel funding policies based only on Dealer consent and on actual collateral, to prevent dealers from facing additional financial pressure due to unsold stock. This is the final opportunity for PV OEMs to recalibrate and support market recovery before it's too late!

Going forward, FADA’s near-term outlook for automobile retail is cautiously optimistic as both Navratri and Diwali fall in the same month, creating strong expectations for a surge in vehicle sales.

With healthy water levels in reservoirs and improved crop yields supporting rural demand, the festive season is expected to drive a substantial boost in two-wheeler, passenger vehicle, and tractor sales with new launches been planned for the month. However, the passenger vehicle segment faces a critical situation due to high inventory levels at dealerships.

Vigneshwar cautions that if sales do not pick up as expected in October, dealers could face significant financial pressure from unsold stock piling up in their warehouses.

While dealers and OEMs are betting on robust festive sales, especially in rural markets where positive cash flow and better agricultural conditions are expected to spur demand, the outcome remains uncertain.

He states that a successful October is essential to clear out excess inventory and set a positive growth trajectory for the remainder of FY2025. With rising inquiries and optimistic dealer sentiments, the outlook leans towards optimism, but high stakes and dependency on October’s performance warrant a cautious approach.

“If the anticipated sales do not materialise, it could shift the outlook to pessimistic, putting dealers as well as OEMs in a difficult position heading into the new year,” he concludes.

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    Skoda Launches Elroq vRS, Its Fastest Electric SUV

    Skoda Elroq vRS

    Skoda Auto has unveiled the Elroq vRS, the sportiest variant of its new all-electric compact SUV. The model debuts six months after the Elroq’s world premiere and will make its first public appearance at Milan Design Week 2025 from 8 April to 13 April 2025.

    The Elroq vRS features two electric motors delivering 340 PS (250 kW) and all-wheel drive. It accelerates from 0–62 mph in 5.4 seconds, making it the fastest car in Skoda’s lineup. The 84 kWh battery provides a WLTP range of over 340 miles and supports DC fast charging at up to 185 kW, enabling a 10–80 percent charge in 26 minutes.

    Johannes Neft, Skoda Auto Board Member for Technical Development, said, “The Elroq vRS combines 340 PS output with a 550 km range. Its DCC adaptive chassis balances sportiness and comfort, while the Modern Solid design language introduces a new aesthetic for vRS models.”

    The exterior includes black accents, 21-inch alloy wheels and an illuminated Tech-Deck Face. Standard features include LED Matrix headlights, a sports chassis and progressive steering. Inside, the cabin features Suedia microfibre upholstery, a heated sports steering wheel and a 13-inch infotainment display with vRS-specific graphics.

    The Elroq vRS also debuts Skoda’s latest Travel Assist system, integrating adaptive cruise control and swarm data. Remote Park Assist allows smartphone-controlled parking, while Powerpass provides access to over 800,000 European charging points.

    Production begins in late 2025, with pricing to be announced closer to launch.

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      Hyundai Motor Company Showcases IONIQ6 And Nexon FCEV At Seoul Mobility Show 2025

      Hyundai Ioniq 6 Line

      Hyundai Motor Company, one of the leading passenger vehicle manufacturers globally, has redesigned the IONIQ 6 and the all-new NEXO fuel cell electric vehicle (FCEV) at the Seoul Mobility Show 2025.

      Building upon the success of the original IONIQ 6 launched in 2022, the refreshed model features a more refined aesthetic and improved proportions, embodying the design philosophy of ‘Pure Flow, Refined.’

      Senior Vice-President Simon Loasby noted that the lineup each expresses a distinct character while adhering to a cohesive vision. Key exterior updates include an elevated hood, sharper curves, and the removal of the prominent rear spoiler in favour of a more integrated ducktail design to enhance aerodynamics. The vehicle now sports updated front and rear lighting with slim DRLs and modern chrome accents, while the economic body flow reflects its streamlined nature.

      On the Inside, the IONIQ 6 offers the ‘Mindful Cocoon’ experience, prioritising user comfort with new steering wheels, premium materials and enhanced functionality, including an enlarged climate control display.

      In tandem, Hyundai presented the IONIQ 6 N Line variant, which inherits aggressive design elements from the RN22e Rolling Lab. The N Line features bold, wing-shaped bumpers and extensive use of black accents for a sportier profile. The announcement teased the upcoming release of the IONIQ 6 N, a high-performance variant set to debut in July 2025.

      NEXO

      The all-new NEXO represents Hyundai's commitment to redefining hydrogen electric vehicles. With an anticipated range exceeding 700 km from a five-minute refuelling, the second-generation NEXO is said to underscore Hyundai's expertise in fuel cell technology cultivated over 27 years. This new model embraces the 'Art of Steel' design language, reflecting strength and form through bold lines and a sturdy architecture, while ‘HTWO’ lamps solidify its identity as an FCEV.

      Aerodynamically optimised and sporting a spacious interior, the NEXO offers advanced comfort with features like Premium Relaxation Seats, a roomy cabin with improved cargo capacity of up to 993 litres, and sustainable materials throughout. The vehicle's design marries modern aesthetics with practical usability, such as smart storage solutions and digital displays.

      Performance-wise, the NEXO's powertrain advancements boost the power output to 190 kW from a previous 135 kW, facilitating a quicker 0-100 kmph time of 7.8 seconds. The FCEV's fuel efficiency has also improved thanks to an increase in hydrogen tank capacity to 6.69 kg, coupled with innovative aerodynamic enhancements for better efficiency.

      Hyundai has integrated host of tech like intuitive navigation enhancements and advanced driver assistance systems (ADAS), ensuring high safety standards. NEXO aims for top-tier safety ratings, featuring multiple airbags and an ultra-rigid structure to protect occupants and the hydrogen tank.

      Scheduled for global release later this year, the new NEXO signifies Hyundai's leadership in hydrogen as they continue to innovate and strengthen their offerings within the clean mobility spectrum.

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        Maruti WagonR Continues To Be India’s Best Selling Car For 4th Year In A Row

        Maruti WagonR

        Maruti Suzuki India, the country’s largest carmaker, has attained another milestone with its WagonR hatchback continuing to be the best-selling passenger vehicle for the fourth year in a row.

        With 198,451 units sold in FY2025, the WagonR alone consisted 11 percent of the total passenger vehicle sales for Maruti Suzuki India. Till date, the WagonR has gone home to over 3.37 million customers.

        Partho Banerjee, Senior Executive Officer, Marketing and Sales, Maruti Suzuki India, said, “WagonR’s sustained leadership in the Indian automotive market underscores strong customer trust and an unmatched value proposition over 25 years. Our focus on innovation and customer-centricity has ensured that the WagonR remains a top choice for Indian families. In fact, 1 in every 4 WagonR customers returns to repurchase India’s highest-selling car, a reflection of its widespread appeal and the confidence our customers place in the brand.”

        “Hatchbacks are an integral pillar of India's automobile industry. The WagonR's consistent leadership, securing its position as the highest-selling vehicle for four consecutive years, underscores the significance of this segment in driving long-term industry growth. Looking ahead, this segment will continue to be a cornerstone in spreading the joy of mobility to every Indian household," he added.

        The WagonR is available with K-Series Dual Jet, Dual VVT engine in 1.2-litre and 1.0-litre engine options in both manual and Auto Gear Shift (AGS) transmissions.

        With a wide range of powertrain and variant options, the WagonR continues to offer a unique appeal in its segment, giving customers greater choice to suit their requirements perfectly. With cumulative sales exceeding 33,73,884 units, WagonR has been the go-to choice for those seeking the joy of mobility.

        Maruti Suzuki India Achieves Record-Breaking Sales In FY 2024-25

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          Hyundai Motor India Introduces Wireless Adapter For Hyundai Alcazar To Support Apple CarPlay And Android Auto

          Hyundai Alcazar

          Hyundai Motor India (HMIL), a leading passenger vehicle manufacturer, has introduced a new ‘Wired to Wireless Adapter’ for the Hyundai Alcazar SUV.

          The adapter will enable seamless wireless Apple CarPlay and Android Auto access for Alcazar (Prestige, Platinum and Signature variant) customers, which will allow them to effortlessly use their phone applications on the infotainment system without using a cable.

          Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai Motor India, said, "At Hyundai Motor India, our focus is to empower customers by providing best-in-class technology that elevates their driving experience. The introduction of our ‘Wired to Wireless Adapter’ is a significant step in meeting the expectations of today’s tech-savvy customers, who expect seamless connectivity throughout their journeys. We believe this innovation will enhance the in-car entertainment experience of our customers."

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