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Passenger vehicle wholesales touched an all-time October high of 389,714 units, registering a year-on-year (Y-o-Y) increase of nearly 16 per cent, while sales of passenger cars slipped from 140,926 units in October 2022 to 130,046 units last month, according to the data from the Society of Indian Automobile Manufacturers (SIAM).
The growth of the Passenger Vehicle (PV) segment is coming from the utility vehicles which clocked a Y-o-Y growth of 40 per cent to 198,356 units in October.
“The Passenger Vehicle (PV) segment achieved a remarkable 15.9 per cent Y-o-Y growth in October 2023, marking its highest-ever monthly sales. This surge was primarily driven by the SUV segment,” said Saket Mehra, Partner, Grant Thornton Bharat.
“The industry experienced heightened sales during the 2–3-month festive season, supported by new launches and a robust product pipeline. VAHAN data indicates a consistent registration of over 300,000 passenger cars monthly in the last three months,” he said.
Mehra added that the Year-end discounts will further act as avenues for increased supplies for SUVs.
“The small car segment (cars less than 3.6 meters) recorded a substantial 54.5 per cent year-on-year decline this quarter, signaling a notable shift in consumer preferences. Anticipating this shift, discounts on entry-level cars may be offered later in the year, accompanied by decreased production to meet adjusted market demand,” he said.
Mehra added that October witnessed approximately 380,000 cars dispatched by OEMs to dealers.
“High inventory levels will be key towards fulfilling festive and wedding season demand. Foreseeing a potential decline in demand post the festive season, OEMs are expected to reduce dispatches to dealers in November,” he said.
Rajesh Menon, Director General, SIAM highlighted that PV sales were the highest ever sales of October month.
Meanwhile, two-wheeler sales grew by 20.1 per cent in the festive season with wholesales coming in at 1,895,799 units. Three-wheelers too continued their bullish run, growing by 42 per cent during the month, selling 76,940 units.
Overall, automotive wholesales for October including PVs, two-wheelers, three-wheelers and quadricycles touched 2,621,248 units.
“Both Passenger Vehicles and three-wheelers have posted the highest ever sales of October, while the two-wheeler segment has also posted good sales in October 2023. All the three segments have posted double-digit growth,” said Vinod Aggarwal, President of 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,” Aggarwal said.
