While domestic auto sales have been doing well, the other piece of good news comes from exports which have seen a turnaround in October.
According to data released by the Society of Indian Automobile Manufacturers (SIAM), overseas shipments were 3.71 lakh units, up 0.46% from 3.69 lakh units in October 2022. While three-wheelers fell 25.3%, cars and two-wheelers increased by 13.13% and 1.3% respectively.
As for overall production, October saw a tally of 2.62 million vehicles, up 19.6% from the previous year’s figure of 2.19 million units. The most noticeable increase was in Passenger vehicles which were up 15.5% Y to 3,82,395 units while every other product category did as well.
There are concerns about the entry-level offerings, both in two-wheelers and cars, and it was in this context that RC Bhargava, Chairman, Maruti Suzuki India, had recently said that this scenario needed to change. Vinod Aggarwal, President, SIAM, said the growth momentum was encouraging for the industry.
From the viewpoint of sales, passenger vehicles led the surge with its ‘best ever’ sales to 341,377 in October, 17.2% more than what was recorded last year. Rajesh Menon, Director General, SIAM, said three-wheelers posted their highest ever sales at 76,940 units (up 42.7%), while two-wheelers reported 1.89 million units, representing a 20.1% increase.
While domestic sales are back on track, the Federation of Auto Dealer Association (FADA) has cautioned that the remainder of the fiscal could be a rollercoaster of sorts. While the festive season will see a spurt in bookings in the PV space, the shadow of year-end discounts looms large. The other area of concern is the high inventory level of 63-66 days.
If Diwali sales are tepid, the weight of unsold stock could lead to significant dealer distress and justify FADA's concerns about industry-wide repercussions. Immediate and decisive action is imperative to counter the risk of a financial squeeze, says the association.
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