SUV sales give Indian auto industry festive push, small car segment limps
- The festive season came as a much-awaited breather for the automakers bringing much-needed sales boost.
After a lacklustre car sales performance over the last couple of months across India, the festive season is witnessing a surge in demand and sales across the country. In October, the auto industry received a festive push, which was a much-desired boost for the sector. The SUV segment witnessed a surge in demand and sales in October, thanks to the festive push, which propelled the major car manufacturers to post significant growth. Interestingly, this came at a time when the small car segment continued with sluggish sales performance, highlighting the consumers’ increasing preference for larger and premium cars.
Maruti Suzuki, the largest car manufacturer in India, posted a 19.4 per cent rise in its SUV sales last month compared to October 2023. With this, the automaker hit a record high. Another major player in the Indian SUV market, Mahindra posted its highest monthly sales in the current fiscal year, recording a 25 per cent rise in numbers last month, as compared to the same month a year ago. Interestingly, Mahindra reported a rise in sales every month in this financial year, mostly supported by new launches such as the Thar Roxx and XUV700.
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Among others, Hyundai posted its highest-ever monthly sales in October with 37,902 units, led by the Creta. Overall domestic sales for Tata Motors, with about two-thirds of its total sales volumes coming from SUVs, stayed flat, hit by stiff competition from Mahindra.
Indian auto industry seeing dwindling sales
The Indian auto industry has been witnessing a dwindling picture over the last several months. The rising inflation, increasing cost of vehicle ownership, and sky-high fuel prices have been impacting sales of new vehicles. Demands for new cars have slowed after two years of surging growth, forcing the carmakers to moderate sales to dealers and dish out higher discounts as showroom owners grapple with rising levels of unsold cars.
Inventory levels hit 85 days in September this year, which is really high as the recommended level is a month’s worth of stock. However, the month-long festive season, which is an auspicious time during which Indians typically purchase big-ticket products, started early last month fuelling growth in the sector. This is helping automobile dealers offload piled-up inventory. Earlier this week, Maruti Suzuki said its inventory level was down to 30 days thanks to higher festive-season discounts.
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First Published Date: 03 Nov 2024, 12:26 PM IST
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