Total passenger vehicle sales (dispatches to dealers) in October grew 16 per cent year-on-year (y-o-y) to 3,89,714 units, compared to 3,36,330 units in the corresponding month last year. According to the monthly sales data shared by the Society of Indian Automobile Manufacturers (SIAM), the sales were contributed by utility vehicles (UVs), which grew 40 per cent y-o-y to 1,98,356 units, the highest-ever growth, compared to 1,41,254 units in October last year.
However, due to more demand for UVs/SUVs, the passenger car segment (sedans and hatchbacks) declined by around eight per cent y-o-y to 1,30,046 units during the month, compared to 1,40,926 units in October 2022.
In the two-wheeler segment, total sales rose 20 per cent y-o-y to 18,95,799 units during the month, compared to 15,78,383 units in October 2022. While scooter sales grew 15 per cent y-o-y to 5,89,802 units in October, motorcycle sales grew 23 per cent y-o-y to 12,52,835 units last month.
Total three-wheeler sales also jumped over 42 per cent y-o-y to 76,940 units in October, against 54,154 units in the corresponding month last year. “Both passenger vehicles and three-wheelers posted highest-ever sales of October, while two-wheeler segment has also posted good sales in the month of October 2023. All the three segments have posted double-digit growth,” said Vinod Aggarwal, President, SIAM.
This growth momentum is encouraging for the industry, which has been enabled by sustained conducive policies of the government and the ongoing festive season, he said.
The grand total of vehicles across categories grew by 23,62,453 units, compared to 19,68,867 units.
Inventory levels
However, these wholesale numbers are worrisome for dealers as the retail sales of the vehicles are much lower, and according to a recent report by the Federation of Automobile Dealers Associations (FADA), the average inventory for PVs ranges from 63-66 days.
“With PV inventory levels soaring to an all-time high of 63-66 days, dealerships are signalling capacity concerns. FADA has issued a red flag, urging manufacturers to not only moderate vehicle dispatches, but also to introduce more aggressive and attractive schemes promptly,” Manish Raj Singhania, President, FADA, had said.
This dual approach is essential to help dealers clear their inventory before year-end, averting the potential financial repercussions associated with excess unsold stock, he had added.
In October, the PV retail sales declined by 1.36 per cent y-o-y to 3,53,990 units as compared with 3,58,884 units in corresponding month last year. Similarly, the two-wheeler retail sales had also declined by 12.60 per cent y-o-y to 15,07,756 units during the month as against 17,25,043 units in October 2022.