Auto sales cool off in Oct on inventory readjustment

MUMBAI: Auto sales of most manufacturers cooled in October as dispatches to dealers moderated after the festive season ended on October 19, with Diwali. Auto firms in India count dispatches to dealerships as sales.

The top five passenger vehicles makers—Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Mahindra & Mahindra Ltd, Honda Cars India Ltd, and Tata Motors Ltd—sold a cumulative 238,838 units in the month, up 3.7% from a year ago.

Market leader Maruti Suzuki India Ltd led sales in the month. The local arm of the Japanese carmaker sold 135,128 units, up 9.25% over a year ago.

Sales were driven by a 29.8% increase in the utility vehicles segment on the back of new launches, including a refreshed version of the premium compact sports utility vehicle S-Cross.

This more than compensated for the 4.2% fall in the sales of old workhorse models such as the Alto and WagonR. Sales of the Ciaz sedan fell 35.4% as buyers shunned the hybrid version after a price hike of ₹80,000 following an increase in GST rate.

Tata Motors’s sales growth was just 1% in October. Mayank Pareek, president, passenger vehicles unit, attributed it to fewer working days in October.

Sales at Mahindra also fell 5.4% to 23,413 units during the month. Rajan Wadhera, president, automotive sector, Mahindra, attributed the fall to tapering demand after the festive season and a higher base last year.

“The festive came later last year so there is a higher base effect,” said Subrata Ray, senior vice-president (corporate sector ratings) at ICRA.