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While automobile wholesale dispatches rose in October for most industry players, with many breaking their own records, how long it will after the festival season ends remains topmost on the minds of industry experts.
Post November, sales will mostly be driven by discounts and offers, the said.
Vinkesh Gulati, President, Federation of the Automobile Dealers Associations, told BusinessLine he doubts if the growth trend will continue post November.
“Everything is boiling down to auspicious occasions, which is obviously helping us. But I doubt this demand will continue. December being year-end, companies may come up with some good schemes for leftover vehicles. So, after November, I see a bit of easing of the demand,” he said.
However, Gaurav Vangaal, Associate Director at IHS Markit, said sales may normalise towards the end of the year but “will regain some volumes back with the start of the new year”.
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But, for now, the companies are rejoicing in the numbers, which come after a prolonged period of demand slump due to the pandemic.
“We were expecting substantial numbers during the festival season. The pent-up demand and product launches, with stabilised supply chains, have paved the way for growth,” Vangaal said. He added that the demand for some of the models is exceeding the production capabilities of the carmakers and suppliers. Cars like Hyundai Creta, Tata Altroz and Kia Sonet are leading the way for Hyundai, Tata and Kia, he added.
The numbers shared by these companies explained so and market leader Maruti Suzuki India (MSIL) was not behind to show its leadership position during the month. According to analysts, some of the compact vehicles of MSIL were high in demand.
The company reported wholesales of 1,63,656 units in the domestic market in October, up 18 per cent as compared with 1,39,121 units in the same month last year.
Similarly, second largest manufacturer Hyundai Motor India reported highest-ever monthly sales of 56,605 units in the domestic market, which is up 13 per cent year-on-year (YoY) as compared with 50,010 units in October last year.
However, 'Scorpio' maker Mahindra & Mahindra, reported marginal growth in its domestic sales during the month on YoY basis (18,622 units vs 18,460 units).
In the two-wheeler sector, top player Hero MotoCorp also reported the highest ever dispatches in its history during last month. The company reported 35 per cent growth of wholesale at 7,91,137 units during the month as compared with 5,86,988 units in corresponding month last year.
Other manufacturers will be sharing their sales numbers on Monday.
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