Hyderabad: After months of slowdown, auto sales in India have started showing signs of a rebound in October with key players in the passenger vehicle and two-wheeler market posting record monthly sales.
Maruti Suzuki India Ltd, the country’s largest carmaker by sales, said it sold 1.63 lakh vehicles in October, its highest ever in a month. During the same period last year, the automaker had sold 1.39 lakh units.
Similarly, India's second-largest carmaker Hyundai too recorded its highest-ever domestic sales in October, selling 56,605 units. The company's previous highest monthly sales figure was around 52,000 cars seen in the month of October in 2018.
However, despite companies posting record numbers, retail auto sales may have still remained weak when compared to the figures in 2019, according to Vinkesh Gulati, chairman of the Federation of Automobile Dealers Associations (FADA).
Gulati told ETV Bharat: “The month of October has definitely seen some pent-up demand during the nine days of Navratri. While I may not be able to give exact numbers, the overall PV sales look to be lower when compared to the year-ago levels, with a likely single-digit decline.”
Notably, sales numbers announced by auto companies are wholesale figures that indicate the number of vehicles dispatched from factories to dealers, while retail numbers announced by FADA every month are sourced from the government’s vehicle registration data. FADA is yet to announce the October numbers.
Also read: RBI increases market trading hours from Nov 9
Explaining the reason behind weak retail numbers, Gulati said: “The two main reasons for the same are. (Firstly) overall inventory for passenger vehicles, except Maruti, was comparatively an issue as supply-side constraints continued to haunt OEMs (original equipment manufacturers).”
He added: “(Secondly) last year, both Navratri and Diwali were in the same month, while this year Navratri is in October and Diwali will be in November. Hence, demand took a hit when compared with last year.”
Gulati was not very optimistic about two-wheeler sales, too. “Two-wheeler sales are also negative (compared with a year ago), though by a sharper double-digit,” he said.
“Except Hero, other two-wheeler OEMs had also faced similar issues on the supply side,” Gulati added.
Hero MotoCorp Ltd had said earlier this week that it sold over 8 lakh motorcycles and scooters in October 2020, which is its highest-ever sales in any single month.
Another two-wheeler maker Bajaj Auto Ltd’s two-wheeler sales also rose 18 percent in October selling 470,290 units. This is its highest ever sales recorded in a month, according to the company’s regulatory filing.
