Informist, Wednesday, Nov. 13, 2024

MUMBAI – Overall vehicle despatches to dealerships in India rose 11.5% on year to 2.63 million units in October, in anticipation of strong consumer demand during the Dussehra and Diwali festivals. The industry's exports jumped 22.4% on year to 454,054 units, according to data released by the Society of Indian Automobile Manufacturers Wednesday. The overall vehicle sales volume was driven by healthy growth in two-wheeler despatches due to an improvement in rural demand on the back of a good monsoon.

In October, two-wheeler despatches rose 14.2% on year to 2.16 million units. By comparison, passenger vehicle sales, including those of Tata Motors Ltd., rose just 1% on year to 393,238 units, and three-wheeler despatches were flat on year at 76,770 units. Quadricycle wholesales volumes plummeted to 4 units from 81 units in October last year.

"October 2024 saw two major festivals, Dussehra and Diwali, both occurring in the same month, which traditionally drive higher consumer demand, providing a significant boost to auto industry's performance. Both passenger vehicle and two-wheeler segments posted highest ever sales of October in 2024," said Rajesh Menon, director general, SIAM.

In the two-wheeler category, motorcycles continued to account for a major portion of the total despatches in October. Wholesale sales of motorcycles increased 11% on year to 1.39 million units, and those of scooters increased 22.3% on year to 721,200 units. Meanwhile, sales of mopeds fell 1.5% on year to 52,380 units.

Among passenger vehicles, a decline in sales of small cars--which include micro, mini and compact models--and vans weighed on overall segment despatches. Sales of small passenger cars dropped 17.3% on year to 107,520 units, with most automakers, except for Volkswagen India Pvt. Ltd., reporting a decline in sales over the year-ago period. During the month, van sales fell 10.2% on year to 11,653 units. However, utility vehicle sales rose nearly 14% on year to 225,934 units, led by growth in Maruti Suzuki India, Mahindra & Mahindra, Hyundai Motor India, and Toyota Kirloskar Motor's despatches.

In the three-wheeler category, a decline in sales of goods carriers and electric rickshaws weighed on the overall segment volumes. While despatches of goods carriers fell 1% on year to 11,539 units, those of electric rickshaws halved on year to 2,085 units. By comparison, sales of three-wheelers used to carry passengers rose 2% on year to 62,531 units--this category contributes the most to overall segment volumes. Sales of electric carts surged 130% on year to 615 units.

In October, India's overall automobile retail sales rose 32% on year due to strong demand during the Navratri and Diwali festivals, according to data from the Federation of Automobile Dealers Associations. Demand from rural areas boosted sales of two-wheelers and passenger vehicles, supported by the government's announcement of an increase in the minimum support price for the rabi crop. Attractive schemes, discounts and new launches also stimulated demand. However, despite strong growth in passenger vehicle sales, the overall inventory with dealers still remained at 75–80 days, as automakers continued to heavily stock dealers. In September, the passenger vehicle stock had reached an alarming level of 80–85 days, against the ideal inventory of 30-35 days. Even with the onset of the festival season, retail sales in the segment remained under strain as customers delayed purchases due to the Shraddh period.

In October, the automobile industry reported strong growth in exports, with despatches in all segments growing on year. Passenger vehicle exports rose 14% on year to 61,530 units last month and two-wheeler exports surged 25.4% to 365,342 units. Exports of three-wheelers were up 5% on year at 26,798 units.

On the production front, the industry reported a growth of 10% on year in total output at 2.88 million units. Production of two-wheelers grew 13.3% on year to 2.41 million units. However, production of three-wheelers declined 6.7% to 103,417 units, and that of passenger vehicles fell 4% on year to 367,185 units in October.

For Apr-Oct, the association reported total vehicle sales of 15.21 million units in India, up 13% on year. Exports rose 16% on year to 2.95 million units and production was up 12.6% on year at 18.02 million units.

The Society of Indian Automobile Manufacturers detailed domestic vehicle sales figures for October as follows:

* Data does not include sales numbers of BMW, Mercedes, Jaguar Land Rover, and Volvo Auto. Tata Motors domestic sales data for September included only in ‘Total PV’, detailed break-up is not available.

The Society of Indian Automobile Manufacturers detailed domestic vehicle production figures for October as follows:

* Data does not include sales of Tata Motors, BMW, Mercedes, Jaguar Land Rover, and Volvo Auto

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Darshan Nakhwa

Edited by Deepshika Bharadwaj and Avishek Dutta

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