Auto dispatches scale new peak as dealers stock up post year-end sales

Automakers dispatched 393,074 units of cars, utility vehicles and vans last month, a 14% increase from a year earlier and the highest on record, as dealers restocked inventories depleted during year-end sales promotions.

As per data available with industry body Society of Indian Automobile Manufacturers (SIAM), the previous record for passenger vehicle sales was 391,811 units in October 2023.

In January last year, manufacturers had dispatched 346,080 units to dealerships.

Automakers in India mostly report wholesale dispatches from factories to dealerships, and not retail sales to customers.

Volumes were propelled by strong performance at Maruti Suzuki, Hyundai Motor India and Tata Motors.

Auto Dispatches Scale New Peak as Dealers Stock Up Post Yr-end Sales.

Sales of two-wheelers rose 26% from a year earlier to 1,495,183 units last month. Three-wheeler dispatches went up by 9.5% to 53,537 units.

“Passenger vehicles sales have remained resilient led by positive consumer sentiments, while the two-wheeler segment witnessed good growth in January as well, as the rural market continues to recover,” SIAM president Vinod Aggarwal said.

While the three-wheeler segment also performed better last month, the commercial vehicle segment did not grow in January 2024, Aggarwal said.

“It (CV) is likely to see good offtake in the next two months of this financial year,” he added.

The government’s strategic focus on mobility in budget 2024, including strengthening the electric vehicle ecosystem, especially the charging infrastructure and public transport, should help in continuing with the overall growth momentum for the auto sector, he said.

“Industry stocks were low at the start of the month which prompted dealers to restock. While demand parameters are stable, February onwards we will see the direction the market is moving,” Shashank Srivastava, senior executive officer (marketing and sales) at Maruti Suzuki told ET.

Tarun Garg, COO, Hyundai Motor India said, he is “cautiously optimistic” about the momentum in the auto industry continuing in 2024.

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