New Delhi: Owing to improved production and anticipation of festive demand, vehicle dispatches were in green during November 2023.
This year the festive season, which accounts for about 28% of the total annual sales of the industry, concluded in November as against the month of October during the last year.
Following is a segment wise report of vehicle dispatches during November 2023.
Passenger Vehicles
On a high base of last year, the domestic passenger vehicle wholesales stood at 3.35 lakh units in November 2023, marking a growth of about 4% over 3.22 lakh units in November 2022. SUVs contributed to about 53% of the total industry dispatches to dealers in November this year.
However, post the festivals of Diwali and Bhai Dooj which concluded by November 15, the industry has witnessed a drop in retail sales, said Shashank Srivastava, Senior Executive Officer- Marketing and Sales, Maruti Suzuki.
Going forward, most PV OEMs are expected to moderate their wholesales in December in order to manage the high stocks. While some models have a long waiting period, others are building up the inventory. Customers may also expect sales promotions both on OEM and dealer level before the year-end.
According to Srivastava, the industry is expected to close the current financial year with the best-ever annual wholesales of over 41 lakh units.
Tarun Garg, COO, Hyundai Motor India said post the festive season the company’s dealer network stock is at a level of three weeks, and over 60% of its overall sales account for SUVs.
Veejay Nakra, President, Automotive Division, M&M said, “We continue our growth trend, backed by strong demand for our SUV portfolio. While we saw a healthy festive season, we faced supply challenges on select parts during the month. We are keeping a close watch and taking appropriate steps to mitigate the challenges”.
Interestingly, the industry’s hybrid vehicle sales surpassed that of electric vehicles (EVs) for the third consecutive month in November.
Two Wheelers
In anticipation of festive demand from rural and ongoing marriage season, two wheeler makers reflected a positive trend in wholesales with all the OEMs marking a double-digit growth in November.
With a pickup in demand during the festive time, the industry remains optimistic for the upcoming months.
B Govindarajan, CEO, Royal Enfield said, “With our recent launches we are confident that we will be able to sustain our growth momentum.”
Ratings agency ICRA recently stated that the industry is expected to record a moderate growth in volumes in FY 2024 (4-7%) even as export volumes remain impacted by weak demand.
During the festive season, there was a robust growth in two wheeler retails (about 21% YoY), aided by festive cheer, upcoming marriage season and some recovery in rural demand, which supported sales growth in the entry level segment (<110 cc). The dealer inventory levels remained at near normal levels, with the OEMs wary of a build up in inventory at the dealerships, it said.
