October 2019 sees revival in sale of passenger vehicles in India
In October 2019, the passenger vehicle industry showed signs of revival. While the worst is far from over, manufacturers remain cautiously optimistic.
The Indian auto industry, which consists of nearly half of the country’s manufacturing output, has been going through turbulent times. However, after experiencing a drop in volumes for almost a year, the industry, buoyed by festive cheer, has shown signs of revival.
In fact, the auto industry is hailing October as its best month this year. Domestic dispatches have improved for passenger vehicles and two-wheelers, but for commercial vehicles, the situation still looks dreary.
Maruti Suzuki, India’s biggest carmaker, has shared positive sales for the first time this financial year. Sales in October 2019 for the brand stood at 1,39,000 units, growing by 2.24 percent in comparison to October 2018. In the same month last year, the company had sold 1,35,948 units. This revival was boosted by Maruti adding 60,000 customers during the Navratri period. Apart from heavy discounts, new products like the S-Presso and XL6 have helped grow volumes.
However, India’s largest exporter of passenger vehicles Hyundai experienced a small drop in volumes to 50,000 units in October 2019, against 52,001 units in the same month last year.
The Elite i20 has been the best-selling model for the South Korean brand, with the car selling 14,700 units last month. Other products like the Grand i10 Nios, Venue, and Creta also registered strong performances.
Domestic sales for Mahindra and Mahindra dropped by over 18 percent in October 2019 to 18,460 units from 22,563 units last year. This is despite the company delivering 13,500 vehicles on Dhanteras. Electric vehicle sales (which includes the sedan eVerito and commercial vehicles like the e-Alfa Mini and Treo) in October 2019 for Mahindra Electric stood at approximately 2,000 units.
Tata Motors’ sales volumes dropped from 18,290 units in October 2018 to 13,200 in October 2019. However, its retail performance improved considerably with the company claiming highest sales this fiscal. Launches by Tata in the month of October included the Harrier Dark edition and Nexon Kraz+.
Kia Motors and MG Motors together pulled in over 16,000 units in October 2019 with the South Korean carmaker alone selling 12,850 units of the Seltos. Renault was the only other manufacturer to end in green with 11,500 units sold in October 2019, against 7,065 units in the same month last year.
While overall industry volumes may seem to be recovering, things still look dreary. Especially, when you take into account how Dussehra, Dhanteras, and Diwali fell in the same month. The upcoming BS-VI transition will continue to cast a shadow.
The industry may be moving forward to a greener future, vehicles will undergo a cost increase, which will further dampen buying sentiments.
(Edited by Saheli Sen Gupta)