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Business News/ Auto News / Wholesales of passenger vehicles continue to grow in December as manufacturers fill inventory post-festive season
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Wholesales of passenger vehicles continue to grow in December as manufacturers fill inventory post-festive season

The growth in dispatches comes as a result of low base in the corresponding period
  • Shift in customer preference towards sport utility vehicles, especially in the urban areas, continues to benefit Hyundai Motor India
  • Market leader, Maruti Suzuki India, reported a robust 17.8% year-on-year growth in domestic wholesale to 146480 units in December (Photo: Ramesh Pathania/Mint)Premium
    Market leader, Maruti Suzuki India, reported a robust 17.8% year-on-year growth in domestic wholesale to 146480 units in December (Photo: Ramesh Pathania/Mint)

    India’s top passenger vehicle makers posted double-digit growth in wholesales, or factory dispatches, in December following a sustained recovery in demand for compact cars and utility vehicles.

    Most moved to replenish dealer stocks after a good festive season and in anticipation of increased demand during the month when automakers offer various discounts to clear year-end stocks. A low base also helped as sales in 2019 were impacted by a slowing economy and an increase in vehicle prices due to a change in emission and safety norms.

    Market leader Maruti Suzuki India reported a 17.8% increase from a year earlier in domestic sales at 146,480 vehicles in December amid continued demand for its affordable hatchbacks on the back of a gradual recovery in economic activity and growing preference for personal mobility during the pandemic.

    Sales of Maruti’s small cars and hatchbacks grew 14.5% from the year earlier to 102,568 units last month, while those of utility vehicles rose 8% to 25,701 units.

    No. 2 Hyundai Motor India recorded a 24.9% jump to 47,400 units with the Korean firm continuing to see strong demand for its Venue and Creta sport-utility vehicles.

    S.S. Kim, president and MD, Hyundai Motor India, said the world has seen multiple challenges in 2020 and that Hyundai has emerged stronger out of the crisis as seen from its market share expansion for the second straight year.

    “Looking towards the future, we are proceeding with cautious optimism and positively anticipate green shoots of recovery in 2021," Kim said. Hyundai produced a record 71,178 vehicles in December.

    Sales at Tata Motors soared 84% from a year earlier in December to 23,545 units amid strong demand for Altroz and Tiago cars. Mahindra and Mahindra also grew its sales by 3% to 16,182 units largely due to demand for its Thar SUV.

    “The passenger vehicle industry continued to grow robustly in Q3FY21, owing to pent-up demand, strong festive season and shift towards personal mobility," said Shailesh Chandra, president, PV business unit, Tata Motors.

    Despite a decline in sales, commercial vehicles continued to show signs of a revival, due to a low base and improvement in economic activity. Sales of Tata Motors’ commercial vehicles fell 5% to 29,885 units, though Ashok Leyland saw a 14.2% rise to 11,857 units in December. Sales at Volvo Eicher Commercial Vehicles fell 7.7% to 4,069 vehicles.

    “Automakers delivered better than expected volume performance in December with the continuation of a positive growth trajectory for most segments. Decent retail sales, coupled with inventory refilling, supported overall performance. Moreover, the commercial segment has been exhibiting good improvement since the past two months. We expect volume traction to continue in coming months," said Mitul Shah, vice president, research, Reliance Securities.

    Due to softening demand of entry-level motorcycles in rural and semi-urban areas, domestic sales of Hero MotoCorp, India’s largest two-wheeler maker, increased by just 3.16% to 447,335 units.

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    Published: 01 Jan 2021, 07:38 PM IST
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