Happy Diwali for automakers in India after October Sales

[tps_header]Automakers from all sectors including Utility Vehicles, Vans and Light Commercial vehicles recorded a 21.5% sales growth in October[/tps_header]

Automakers across India had an eye on the month of October for the sales to grow as almost every company had launched new vehicles. The expectations of these companies were met and some of them even registered unexpected sales. The Indian passenger car market saw a staggering growth of 21.8% growth compared to the sales of last year with an outflow of 1,94,158 cars from the factories. This is a clear sign that the market has begun with some revival activities after years of dejection. Overall sales including the sales of utility vehicles and vans has registered a growth of 21.5%, which is the highest since October 2013 by selling 2,68,629 units.

“Strong growth is supported by the festive season, new model launches and improving cost of ownership,” said Shamsher Dewan, assistant vice president at ICRA. “This further strengthens the signal of growth in the passenger vehicle segment.”

Rakesh Srivastava, Senior Vice President of Sales Markering, Hyundai Motors India, “though festive seasons have always seen growth but the encouraging point is that the industry has recorded growth in the last six months,” he added. “The point to watch is the performance in the next quarter,” he said. “If the fourth quarter, which is a high volume quarter, records double-digit growth, then it will signal a recovery in the entire automobile industry,” he said.

The Utility Vehicle market saw a growth of 20.2% in October with sale of 58,120 units as a result of new launches like Hyundai Creta which became the highest selling SUV after its launch but the best selling Mahindra Bolero took the title back in October. The launch of Mahindra TUV 300 also supported the growth.

The light commercial vehicle industry also recorded a growth of 6.8% in the month of October. Scooter sales in October were 37% more than the last year. The industry sold 5,25,138 units.

However, Indian automakers consider the vehicles moving out of factory as sales and not actual retail sales. So the growth can also be due to automakers’ higher expectations for sale during festive season due to heavy discounts offered.

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