In October, total passenger vehicle sales surged by 16% year-on-year (y-o-y) to 3,89,714 units, up from 3,36,330 units in the same month last year, as reported by the Society of Indian Automobile Manufacturers (SIAM). The remarkable growth was propelled by a 40% y-o-y increase in utility vehicles (UVs), reaching 1,98,356 units, marking the highest-ever growth compared to 1,41,254 units in October 2022.
However, the passenger car segment (sedans and hatchbacks) faced an approximate eight percent y-o-y decline, totaling 1,30,046 units in October, down from 1,40,926 units last year, primarily due to increased demand for UVs/SUVs.
In the two-wheeler segment, total sales soared by 20% y-o-y, reaching 18,95,799 units in October, compared to 15,78,383 units in the same period last year. Scooter sales grew by 15% y-o-y to 5,89,802 units, while motorcycle sales experienced a 23% y-o-y increase, totaling 12,52,835 units.
The three-wheeler segment witnessed an impressive 42% y-o-y growth, reaching 76,940 units in October, compared to 54,154 units in the corresponding month in 2022. Vinod Aggarwal, President of SIAM, expressed satisfaction with the double-digit growth across all three segments.
The industry’s growth momentum is attributed to sustained government policies and the ongoing festive season, creating a positive outlook for the sector.
Despite the encouraging wholesale numbers, dealers face concerns over retail sales, as reported by the Federation of Automobile Dealers Associations (FADA). Average inventory for passenger vehicles (PVs) ranges from 63-66 days, signaling potential capacity issues. FADA President Manish Raj Singhania emphasized the need for manufacturers to moderate dispatches and introduce attractive schemes promptly to clear inventory and avoid financial repercussions.
In October, PV retail sales declined by 1.36% y-o-y to 3,53,990 units, compared to 3,58,884 units in the same month last year. Similarly, two-wheeler retail sales dropped by 12.60% y-o-y, totaling 15,07,756 units, down from 17,25,043 units in October 2022. As the industry experiences buoyant growth, addressing inventory challenges becomes crucial for sustaining the positive momentum.
