NEW DELHI: The combined power of Navratri, Dussehra, Dhanteras and Diwali fired up car sales in Oct as retail numbers shot up by 26%, a booster at a time when demand scenario is tough, despite companies doling out hefty discounts.
Total retail sales in the month are estimated at between 4.8 lakh and 4.9 lakh units (against 3.9 lakh units last Oct), with almost all top companies like Maruti, Hyundai, Tata Motors, JSW MG and Mahindra & Mahindra reporting strong consumer purchases. Many witnessed their highest-ever Oct numbers.
The growth in Apr-Oct, however, is estimated at a modest 5%, weighed down by the slow retail offtake in first two quarters. The slowdown has, however, seen companies cut down on wholesales as many – particularly Maruti – claim to be “recalibrating” their dealer dispatches to pare down inventory levels.
The industry believes that reduction in inventory after festive buying will help it cut down consumer discounts.
Maruti’s retail sales in Oct crossed the 2 lakh-mark (up 25% over 1.6 lakh units), which is its highest-ever for the month, Partho Banerjee, senior executive officer for sales and marketing, told TOI. “The general sentiment was positive and rural nmarket really led in generating demand,” Banerjee said. “The growth in rural was 31%, much faster than urban, and was enabled by a good monsoon and healthy crop yield as well as the agri MSP.” Wholesales for the company in the month, however, were down 5% at 1.6 lakh units.
Hyundai’ wholesale dispatches to dealerships were flat year-on-year. It sold 55,568 units against 55,128 units in the same month last year. Tarun Garg, COO of the company, said demand was led by SUVs, which were 68% of its sales.
JSW MG’s 31% growth in wholesales of 7,045 units were enabled by electrics, including 3,116 units of newly-launched Windsor. “Electrics are contributing over 70% of our total volumes in line with our plans to promote faster adoption of green mobility,” said Satinder Singh Bajwa, chief commercial officer of the company.
Mahindra, which only sells SUVs, had yet another strong month as it had a dealer dispatch of 54,504 units, a 25% growth over 43,708 units it did in wholesales last year. The five-door Thar Roxx, XUV7OO and Scorpio-N led the charge. Tata Motors said its retail sales in Oct was up 30% on high festive demand. “As a result, the total registrations for Tata Motors this Oct are expected to be the highest-ever for the company,” Shailesh Chandra, MD for passenger vehicles and electric mobility, said.
