Wholesale dispatches of PVs, motorcycles rose in October on stock building1 min read . Updated: 11 Nov 2020, 10:54 AM IST
- Vehicle manufacturers have been increasing inventory at dealerships expecting retail sales to pick up during the Diwali and Dhanteras festivals in November
Domestic wholesale of passenger vehicles and two-wheelers increased for the third consecutive month in Octobe, after production and sales came to a halt in April due to covid-19 lockdown measures, as vehicle manufacturers increased inventory at dealerships expecting retail sales to pick up during the Diwali and Dhanteras festivals in November.
Dispatches of passenger vehicles increased by 14.19% y-o-y to 310,294 units in October, as demand for compact cars and entry sport utility vehicles continued to rise in the rural, semi-urban and parts of the urban markets, data released by Society of Indian Automobile Manufacturers (Siam) showed on Wednesday.
Indicating a sustained increase in demand in urban areas, dispatches of utility vehicles grew by 20.45% y-o-y to 113,990 units, as companies such as Maruti Suzuki India Ltd, Hyundai Motor India Ltd and Kia Motors India Ltd increased wholesale of their respective sport utility vehicles to meet rising demand.
Factory dispatches of passenger cars during the period also reported a rebound with a growth of 9.68 % y-o-y to 182,692 units.
The growth in dispatches comes as a result of low base in the corresponding period when automakers witnessed contraction in consumer demand as a consequence of the economic slowdown and increase in vehicle prices due to change in emission and safety norms.
Automobile sales in India are counted as factory dispatches and not retail sales.
In the two-wheeler segment, scooter sales increased marginally by 1.79% to 590,507 units, while the same for motorcycles grew substantially by 23.80% y-o-y to 1,382,749 units as demand for entry and executive segment motorcycles recovered in the rural and semi urban markets. Overall, two-wheeler sales jumped by 16.88% to 2,053,814 units.
Sales of two-wheelers have picked up faster compared with the other segments due to quicker recovery in demand in rural and semi-urban areas compared with metro and tier-I cities. A good summer crop, decent monsoon and comparatively lower spread of covid-19 infection have aided the recovery in rural markets.
Siam did not provide data on wholesale dispatches of commercial vehicles during the month.