Passenger vehicle sales may have hit new record in October

0
108

[google-translator]

Automakers are said to have clocked among their best-ever monthly retail sales in October, outpacing dispatches for the first time this year, as consumers drove home their dream vehicles amid festive fervor after muted celebrations in the past two years on account of the pandemic.

Senior industry executives and dealers told ET as many as 375,000-385,000 cars, sedans and utility vehicles were sold to customers, which brought down inventory in the channel by 25% this month. Retail sales of passenger vehicles (PV) had peaked at 382,000 units in December 2018, compared with 370,416 and 370,300 units in October 2020 and December 2019, respectively.

Automakers saw robust demand for new models, especially SUVs such as the Maruti Suzuki Brezza and Grand Vitara, Hyundai Creta, Tata Punch, and Mahindra Scorpio. With the industry sitting on orders of 800,000-850,000 units, retail sales are expected to be robust in the remaining part of the year, with increased component supplies helping automakers to step up production.

graph

“This has been among the best-ever festive months for the industry,” said Shashank Srivastava, senior executive director, marketing and sales, Maruti Suzuki, India’s biggest carmaker. The company saw retail sales go up by 44% to 192,000 units in the 31-day period starting Navratri. Deliveries would have been higher if not for the shortage of semiconductors, which continues to have some impact on production.

Maruti Suzuki has pending orders for 412,000 units at the end of September 2022, with nearly a third of these for SUVs Brezza and Grand Vitara. Kia Motor India, which saw a 45% increase in sales in the month, also has pending orders. The South Korean auto major delivered about 25,000 units this festive season, according to sources. Meanwhile, Tata Motors – which has been riding high on the success of SUVs Punch, Nexon and Harrier – registered retail growth of 43% in the festive period from last year. “We are delighted with the growth this festive season,” said Shailesh Chandra, managing director of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility. “Demand has been well supported this year with a significant ramp up in supply.”

Two-wheeler makers, too, saw improved sales across urban, semi-urban and rural markets, especially at the entry level where demand has been depressed for nearly three years due to a rise in acquisition, insurance, and running costs since the transition to BS-VI emission standards.

The country’s largest two-wheeler maker Hero MotoCorp saw retail sales go up by 20% over the corresponding festive period of FY22, led by high demand across key states such as Maharashtra, Gujarat, Rajasthan, Uttar Pradesh, Bihar, Jharkhand and Karnataka.

“A positive turnaround in customer sentiment in the just concluded 32-day festive period, starting from the first day of Navratras till the day after Bhai Duj, has also enabled the company to register a significant gain in its market share,” the company said.

Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here