The third quarter tends to be eventful to say the least for automakers, due to a boost from festive season purchases. But major players like Tata Motors Ltd. and Maruti Suzuki India Ltd. saw their sales fall dramatically in November. This, despite assurances from both these automakers post second quarter earnings.
Buyers plan their purchase around the auspicious period of Dussehra and Diwali, but the key thing to watch is the dates. If these festivals come together in one month, the sales data for that month is skewed to the upside, while the other two months in the quarter lag. Usually, Dussehra and Diwali are split evenly between October and November, as seen last year in 2023.
But this year, the vagary was that the five-day Diwali dates were also split. This year the dates were between Oct. 28 to Nov. 3, 2024, which disrupted the sales pattern. This led to sales falling for all passenger vehicle makers dramatically in November this year.
PV Makers Struggle
Passenger carmakers are staring at a bleak picture this quarter. With Diwali in November last year, carmakers were expected to show lower growth, but the numbers have been especially dire in annual terms this month.
Maruti reported a 32% fall in sales in November compared to last year, despite the management reassuring investors post its quarter two earnings, showed VAHAN data. Compared to last month as well, the sales have fallen 48%.
Tata Motors has been another underperformer, with sales falling 40% compared to November last year and 45% compared to last month.
Mahindra & Mahindra Ltd. has been posting strong sales growth and has reported the lowest fall in sales this month.
Going Forward
This month has seen strong focus by automakers on launches. Maruti has launched the fourth-generation Dzire, a feature rich product at an attractive price point of Rs 6.79 lakh. The company is planning to boost the non-SUV portfolio, which still forms majority of its vehicle sales.
Tata Motors has also been ramping up the recently launched Tata Curvv in both internal combustion and electric powertrains.
Mahindra has also unveiled the much awaited BE 6e and XEV 9e electric vehicles which are expected to start deliveries by February 2025.
New launches will drive the sales growth for most passenger car companies this year after a lull seen in the first eight months. Meanwhile, Mahindra has been registering higher sales owing to recent launches, including 3XO and the five-door Thar Roxx.
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