Indian Automakers Post Stronger September Sales as Festive Season Approaches

With the approaching festive season India’s automobile market is blooming as automakers reported strong vehicle sales in September. The season is repeatedly marked as the busiest with automakers using new launches, discounts and financing schemes to attract buyers.

Major carmakers are buckling up with an increased supply anticipating a rise in demand in October and November. Industry data cited in reports indicates that passenger-vehicle dispatches to dealers were expected to rise sharply year-on-year in September, although retail registrations did not increase at the same pace.

The sharp rise in wholesale volume reflecting manufacturers are focusing more on their dealer network rather than representing a direct measure of consumer purchases. Dealers have been building inventories aiming a higher showroom demand during the festival season.

August was also a reflection of September with passenger-vehicle wholesale dispatches rose significantly during the month. Maruti Suzuki reported a 34.8% rise year on year in domestic passenger-vehicle sales along with 59% rise in Tata Motors Passenger Vehicles sale and a sharp 50% rise in Mahindra & Mahindra’s SUV sales.

The automakers are now ready to compete in the market, with a higher stock level in dealership, new vehicle launches and promotional offers considering the high consumer demand during the peak buying months.

September sales indicate the difference between wholesale dispatches and retail sales. Vehicles leaving manufacturing plants to dealers may indicate a preparation for the upcoming peak season but it does not promise the sales.

With the festive season underway, manufacturers including Maruti Suzuki, Hyundai, Tata Motors and Mahindra & Mahindra are positioned to benefit from increased showroom activity and consumer purchases in the coming months.