 "Automakers post highest ever monthly passenger vehicle wholesales in Jan")
The Indian auto industry posted its highest ever monthly domestic passenger vehicle (PV) wholesales in January 2024 at 394,571 units, on the back of rising demand for sport utility vehicles (SUVs) and removal of supply constraints.
This is 13.9 per cent more than the figure in January 2023.
The previous peak was seen in October 2023, with domestic sales touching 391,811 units during the festival period.
During 2022-23, SUVs accounted for only 43 per cent of the automakers’ total sales.
However, this figure has risen to 50.1 per cent during the April-January period of 2023-24, Shashank Srivastava, senior executive officer, marketing and sales, Maruti Suzuki India (MSIL), told Business Standard.
“The SUVs’ share has crossed the 50 per cent mark for the first time on a cumulative basis,” he added.
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MSIL’s domestic PV sales jumped by 13.2 per cent year-on-year (Y-o-Y) to 166,802 units in January.
Seven of the top 10 best-selling cars in India are from MSIL.
“The wholesales in January were high because the inventory pipeline was depleted.
Wholesales were low but retail sales were higher in December 2023 as auto companies reduced their supply and pushed for retail sales through various promotional (discount) schemes,” Srivastava noted. This happens every December as the consumers don't want previous year's stock with dealers once January has started.
At the beginning of January, the inventory with dealers was 177,000 units. “This has become 263,000 units now because of the gap between wholesales and retail. It is still about 20 days of stock, which is below the usual 30-day level in the market,” Srivastava noted.
Multiple auto companies have announced that they would be hiking car prices. “Different companies announce such hikes on different dates. This also pushes the dealer network to take extra deliveries from the factory so that it can sell them at a higher price later,” he said.
“The supply chain constraints are now just in the background. There are no issues right now. That has also pushed up wholesales. Semiconductor chip supply is not an issue in India anymore,” he added.
Hyundai's domestic sales have risen by 14 per cent Y-o-Y to 57,115 units in January. This is the highest ever recorded in a month by India's second-largest carmaker.
Tarun Garg, chief operating officer (COO), Hyundai Motor India, said, “This strong growth has been fuelled by an overwhelming customer response to the newly-launched Hyundai Creta. It has already garnered close to 50,000 bookings within a month of the booking announcement. Further, our entry SUV Exter continues its amazing run in the market clocking great sales numbers as well as winning prestigious auto awards in the country. Going forward, we continue to be cautiously optimistic about the momentum of the auto industry in 2024.”