November Auto Check: Compact SUVs Drive Growth As Demand Stays Robust Post Festive Season
Amongst PVs, compact SUVs and better model availability drove growth.
Auto sales in India rose 2.14% on the year to 33.01 lakh units in November as demand growth remained stable post festival season, according to the Federation of Automobile Dealers Associations. Price cuts post GST 2.0 implementation continued to drive customers to the showrooms.
The passenger vehicle inventory for the month improved to 44–46 days from 53–55 days, as per FADA, a sign that demand was on the uptick. Amongst PVs, compact SUVs and better model availability drove growth. The segment saw Maruti Suzuki lead with 39.4% share, followed by Mahindra at 13.7% and Tata Motors at (13.2%.
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October Auto Sales Hit Record 40.2 Lakh Units On Festive Demand, GST Cuts; Two-Wheelers Lead: FADA
Two-wheeler sales slipped to 19.16% in November to 25.46 lakh units. The annual decline in this category is 3.10%.
"Two-Wheelers, while reporting a modest 3.1% YoY decline, must be viewed in context. A significant retail shift occurred due to festive buying in October, combined with delayed crop payments and uneven supply of preferred models. Encouragingly, dealers continue to report strong walk-ins linked to GST sentiment and healthy marriage season demand," said FADA President C S Vigneshwar.
Three-wheeler sales grew 31.58% on the month to 1.33 lakh units as e-rickshaw and e-rickshaw with cart sales increased significantly. Meanwhile, sales in this category rose 23.67% on annualised basis.
Commercial vehicle sales moderated significantly in November as sales in light-commercial vehicle and medium commercial vehicle categories declined.
Countering the trend, sales grew 3.28% on the month to 28,659 in cthe heavy-commercial vehicle category.
However, commercial-vehicle sales advanced 19.94% on the year to 94,935 in November. Select infrastructure activities, freight movement, tourism, mobility, government tender cycles, and GST reforms supported the growth, according to Vigneshwar.
Cautious Optimism To Prevail
Improving rural sentiment and macro indicators are favourable for near-term outlook. Rabi sowing season started on a strong note. Cooler-than-normal Winter across Northern and Central India will increase the need for mobility and logistics.
Dealers are also confident of strong demand because of a rise in enquiry calls, expected marriage-season purchases, and better stock availability. However, some dealers are expecting a softness in urban premium segments.
Nevertheless, the broader market tone remains measured, yet optimistic, according to FADA.
