FAST DRIVE
Automakers say further hike in fuel prices could dent consumer sentiment
Rising fuel prices didn’t put the brakes on the recovery in car sales, but industry executives warned that a continued rise in petrol and diesel prices could impact sentiment soon.
“The rising preference for personal mobility is still driving car sales and we saw that in the monthly sales numbers of February. However, there is likely to be an impact if fuel price continues to rise,” said Naveen Soni, senior vicepresident of Toyota Kirloskar Motors (TKM).
India’s largest carmaker, Maruti Suzuki, on Monday reported a 9.9 per cent year-on-year (YOY) growth in domestic wholesale to 147,483 units in February. The automaker also replenished inventory at dealerships after improved sales during the December quarter (Q3). Its factory dispatches improved sequentially as well from the 142,604 units recorded in January.
Mahindra & Mahindra (M&M) on Monday reported an 11.38 per cent decline in total sales at 28,777 units in February. M&M had sold 32,476 units last year. Passenger vehicle sales increased 41 per cent to 15,391 units last month, as compared with 10,938 units a year ago.
“Demand continues to remain buoyant for our range of SUVS and pick-ups and we have a robust order pipeline. However, supply of semiconductors, as we all know, is a global issue and it is likely to continue for another three to four months. We will continue to monitor the situation and closely work with our suppliers to minimise this,” said Veejay Nakra, chief executive officer of M&M’S automotive division.
India’s second largest car seller Hyundai Motor India’s (HMIL’S) overall sales rose 26.4 percent YOY in February, led by strong demand across its products, to 61,800 units, compared with 48,910 units sold last year.
“Both domestic and export demand have recorded healthy double-digit growth in February, reflecting an allround improvement in buyer sentiment,” Tarun Garg, director (sales, marketing, and service), HMIL, said.
Similarly, TKM on Monday reported a 36 per cent increase in domestic sales at 14,075 units in February. It was 10,352 units last year.
Analysts said discounts were lower in February. Inventory, too, was much lower for PVS and tractors. Wholesales are expected to grow for replenishing unusually low inventory of PVS and tractors.