 |
|
The festive season brought a much-needed boost to the Indian automotive industry, with strong consumer demand leading to record retail sales and a significant reduction in inventory levels across various car categories. While sales of entry-level cars continue to struggle, consumers embraced premium vehicles, from hatchbacks like the Maruti Suzuki Baleno to SUVs such as the Hyundai Creta, Maruti Suzuki Brezza, Mahindra Thar Roxx, and the electric JSW MG Windsor. This surge in demand, particularly for SUVs, drove a positive change in the market landscape.
The festive season's impact was evident across leading manufacturers. Maruti Suzuki, the market leader, reported a 22.4% increase in retail sales in October, resulting in a 40,000-unit reduction in inventory. Hyundai Motor India also witnessed strong demand for its SUV portfolio, leading to a 0.8% increase in wholesale dispatches and a record-breaking 37,902 SUV sales in October. Mahindra & Mahindra, another prominent player, reported a significant 25% growth in SUV sales, reaching 54,504 units, surpassing Tata Motors in total sales for the month.
While retail sales soared, wholesale dispatches from factories to dealerships remained relatively flat compared to the high base of 390,000 units in October 2023. This suggests that manufacturers are carefully managing production to avoid excess inventory and maintain a healthy balance between supply and demand. The continued momentum in demand, coupled with the upcoming wedding season in November, indicates a promising outlook for the industry. The positive sentiment surrounding the festive season is expected to sustain, driving sustained demand in the coming months. This positive trend, combined with the government's support for the agricultural sector, is expected to further fuel the growth of the automotive industry.
Beyond the passenger car segment, the two-wheeler market also witnessed healthy demand. Hero MotoCorp, the market leader, reported a 17.4% increase in sales, driven by strong demand for 100cc and 125cc motorcycles in both rural and urban markets. TVS Motors Co experienced a 13% growth in sales, while Royal Enfield achieved record sales of 101,886 units, reflecting a 26% increase. The commercial vehicle segment, however, remained muted with Tata Motors, the market leader, reporting only a marginal 1% increase in sales. The farm equipment sector, on the other hand, demonstrated robust growth, with Mahindra selling 64,326 tractors in October, a 30% increase year-on-year. This strong performance is attributed to factors like a good monsoon, positive agricultural output, and government support for the sector.
Source: Record retail sales during festivals bring down inventory in car market