Car and SUV sales soar 11 months of falls
NEW DELHI: Sales of cars and SUVs broke a series of 11-month declines as the numbers became positive, albeit at a tiny 0.3%, on holiday spirits, big discounts and new models.
According to the numbers published by the Society of Indian Automobile Manufacturers (Siam), the change in feelings can be maintained until November and December with a lower base advantage. “Certain positive aspects have been observed in the market. In addition to new models and attractive offers, these include relatively lower financing rates for both customers and distributors, Rajan Wadhera, president of Siam, who is also the CEO of Mahindra and Mahindra’s automotive business, told TOI.
Sales of passenger vehicles, a mixture of cars, vans and vans, stood at 2.85 lakh against 2.84 lakh units sold in the same month last year. While Siam pulls out wholesale numbers that companies send to distributors, company officials say healthy retail sales in the month (customer purchases) led to a decrease in inventory levels.
Wadhera said the recent steps initiated by the government, including those related to the revival of the economy, will also help a return. He said the demand for models of new participants such as Kia Motors and MG Motors also helped keep the October numbers positive. While Kia sold almost 13,000 Seltos SUV units in October, MG Motors sold more than 3,500 Hector off-road units.
However, demand generation remains difficult in categories such as commercial vehicles and two-wheelers.
Sales of two-wheeled vehicles in October decreased 14% to 17.6 lakh units compared to 20.5 lakh units in the month of the previous year. Motorcycle sales decreased by 16% to 11.2 lakh units compared to 13.3 lakh units the previous year. “Two-wheelers meet the mobility requirements in the rural area to a large extent. In recent months, there have been several interruptions such as floods and excessive rains in several regions. However, we expect things to change for the better starting this month, Wadhera said. Scooter sales last month decreased 10% to 5.8 lakh units compared to 6.4 lakh units in the same period last year. Sales of commercial vehicles decreased 23% to 66,773 units in October, Siam said.