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After two consecutive months of muted supplies to dealers, automakers marginally increased their vehicle dispatches year on year (y-o-y) in November even though inventories and discount offers continue to remain at elevated levels.
Five automakers – Maruti Suzuki, Hyundai, Tata Motors, Toyota Kirloskar, JSW MG Motor India – who control 75% of the domestic market, saw 6% y-o-y rise in wholesale dispatches during November. A total of 250,755 cars, sports utility vehicles and vans, were sold by the companies.
According to estimates by Maruti Suzuki’s senior executive officer, marketing & sales,
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Partho Banerjee, November passenger vehicle sales would be around 350,000 (+- 5000) compared to 335,954 in the same month last year, thereby registering a growth of around 4%.
Mahindra & Mahindra (M&M) and Kia, who are in the top seven list, did not share their sales numbers till the time of going to press.
Dispatches remained muted during the peak festive months of September and October, recording a growth of just under 1% y-o-y. This was due to the high levels of stock held by the dealers.
According to dealers, retail (actual consumer) demand remained strong immediately post the festive season which got over with the culmination of Diwali. This, however, was due to discounts which hit an all-time high. The increased dispatches led to reduction in stock levels.
Maruti Suzuki, India’s largest carmaker, clocked 5% y-o-y growth in volumes during November to 141,312 units. This growth was entirely due to its utility vehicle portfolio comprising Brezza, Ertiga, which grew by 20% as its mini and compact car portfolio comprising Baleno, Swift, shrunk by 5%.
“Last year Diwali was in the month of November. This year it was in October. Still if you look at the number, it shows that all OEMs are looking positive,” Banerjee said.
According to him, the main reasons for the favourable numbers in November were ongoing rural demand, wedding season, increased sales of SUVs and good response on the limited edition models. He said that the company’s demand in the rural areas has been better than the urban market.
“The continuity of the October festival is going on in the rural market. Our penetration has gone up by 2.2% to 48.8% now,” Banerjee said, adding that Maruti’s inventory currently stands at a “comfortable” 30 days.
Hyundai, the country’s second largest car company, saw 2.4% y-o-y decline in November volumes to 48,246 units. Without providing the reason behind the decline in volumes, the company said that rural contribution to its domestic volumes was the highest-ever during the month to 22.1%.
Including electric vehicles (EV), the dispatch volumes of Tata Motors passenger vehicles during the reporting month grew by 2% y-o-y to 47,063 units. Though domestic EV volumes were not made available separately by the company, the segment saw 9% rise in volumes.
A note from Nuvama released on November 28 said, “PV industry volumes are likely to be muted due to high base (because of timing of the festive period) and inventory destocking with dealers. Blended discounts remain at elevated levels as OEMs are trying to support demand.”
Toyota Kirloskar, the country’s fifth largest carmaker, continued with its trend of posting high double-digit growth in volumes. The company saw a 44% y-o-y rise in dispatch volumes during November to 24,446 units.
Toyota, however, attributes this growth to discount schemes. “The y-o-y benefits of over Rs 1 lakh on Urban Cruiser Taisor, Toyota Glanza and Rumion (excluding CNG variants), available until December 31, 2024, have played a key role in driving robust sales momentum,” said a press statement.
Carmakers are expected to scale back or maintain the current production momentum for December as discounts are also expected to remain high. Introduction of new models such as M&M BE 6e and 9e, Kia Syros, new Honda Amaze and Skoda Kylaq, Maruti Suzuki eVX, Hyundai electric Creta in 2025 will likely have an impact on December retail demand.
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