Auto demand stays steady in November | Mint
Active Stocks
Tue Feb 27 2024 15:57:55
  1. State Bank Of India share price
  2. 749.70 -1.23%
  1. Tata Steel share price
  2. 144.15 1.09%
  1. Power Grid Corporation Of India share price
  2. 292.50 1.65%
  1. Sun Pharmaceutical Industries share price
  2. 1,579.10 1.42%
  1. ITC share price
  2. 411.15 0.48%
Business News/ Auto News / Auto demand stays steady in November
BackBack

Auto demand stays steady in November

Demand for personal mobility remains strong in November as automakers continue to produce and dispatch vehicles at a healthy pace.

While passenger vehicle production grew 3.9% in November year-on-year at 335,354 units, the pace of growth was slower compared with October as retail demand soared ahead of production, monthly sales data reported by auto firms showed.Premium
While passenger vehicle production grew 3.9% in November year-on-year at 335,354 units, the pace of growth was slower compared with October as retail demand soared ahead of production, monthly sales data reported by auto firms showed.

New Delhi: After a record festive season for sales of passenger vehicles and riding a strong double-digit recovery in two-wheeler sales, demand for personal mobility remained robust in November as automakers continued to produce and dispatch vehicles at a healthy pace.

While passenger vehicle production grew 3.9% in November year-on-year (y-o-y) at 335,354 units, the pace of growth was slower compared with October (15.9%) as retail demand soared ahead of production, monthly sales data reported by auto firms showed. Automakers have taken steps to manage high stock levels by rationalizing factory-gate dispatches ahead of the new year.

Maruti Suzuki, the country’s largest passenger vehicle maker, said its domestic passenger vehicle wholesales last month improved 1.7% y-o-y, while for South Korean carmaker Hyundai Motor India, the domestic market grew 3% over last year with wholesale at 49,451 units.

For Tata Motors, wholesales of passenger vehicles were 1% lower y-o-y in November, with a modest 7% increase in its EV sales. Mahindra & Mahindra, however, clocked a 32% growth in its utility vehicle wholesales in November, riding on an improvement in supplies and strong demand for SUVs in the market.

Demand for personal mobility remained robust in November
View Full Image
Demand for personal mobility remained robust in November

SUVs accounted for over 53% of all PVs delivered to dealers in November—the highest in a month. For Hyundai, SUVs comprised 68% of all its sales in November, in large part due to the introduction of its micro-hatch Exter and its refreshed portfolio.

Interestingly, more hybrids than electric cars were sold in November, the second straight month for the trend. “Hybrids accounted for 2.1% of the overall market and EVs were slightly lower at just under 2%," Shashank Srivastava, senior executive director, Maruti Suzuki said, adding that customers are starting to see the value of hybrid cars vis-à-vis EVs in the form of lower upfront costs and low emissions, even as hybrid options expand.

“The industry’s stock levels, because of higher retail than wholesale this month, has come down a little bit from 335,000 to 330,200 units estimated at the end of November. However, at 30-35 days inventory, stocks in the channel were on the higher side and an area of concern," Srivastava said, adding this will prompt lower wholesales in December.

“We did foresee that wholesales in November and December will taper off, which is being reflected. We are now looking at reducing stocks, so a 3% growth is along expected lines," Tarun Garg, chief operating officer, Hyundai Motor India said. “However, at Hyundai, we are entering December with only three weeks of stock and going forward into January, we expect this to reduce to two weeks", he added.

Two-wheeler sales, on the other hand, benefited from a low base of last year, an improvement in rural demand and wedding-season buying. All two-wheeler OEMs, including Bajaj Auto, Honda Motorcycles and Scooters India (HMSI) and TVS Motor Company saw strong wholesale and retail growth in November in the domestic market.

Bajaj Auto saw a 77% pick-up in its domestic motorcycle sales in November at 218,597 units, even as it suffered 7% lower exports y-o-y the same month. TVS Motor Co. saw 50% growth in its overall domestic two-wheeler sales (both motorcycles and scooters together), while HMSI saw 19% y-o-y improvement in its November domestic sales.

On the retail front, two-wheeler registrations were up 21% y-o-y (excluding electric scooters), while passenger vehicle retail was better than wholesales at 348,422 units registered in November against 284,660 units last year, a growth of 22.4%.

But given that the festive season concluded in October itself last year, retail figures in November are largely not comparable, as Diwali and Bhaidooj elongated the festive season this year to mid-November.

Meanwhile, a report by Icra said recovery of two-wheeler demand is uncertain for the near term, as the impact of uneven monsoons on farm incomes and cash flow will be key to sentiment.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Alisha Sachdev
Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
Catch all the Auto News and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 01 Dec 2023, 11:52 PM IST
Next Story footLogo
Recommended For You
Petrochemical Stocks
₹8,447.40.18%
₹4,496.85-1.51%
₹1,927.61.33%
₹11,459.450.38%
₹936.72.78%
Switch to the Mint app for fast and personalized news - Get App