Carmakers saw their highest-ever domestic sales in a month in October at 4.70 lakh, a 17% year-on-year (y-o-y) jump, as a result of Diwali festive demand and lower GST rates. October was the first full month post the reduction in goods and services tax rates, effected in the last week of September.
The GST rate reduction to 18% from 28% on small cars, coupled with removal of cess, boosted overall consumer sentiment and demand. It was a busy month for companies as they operated factories at full capacity, besides extending business hours at showrooms, officials said.
Maruti Suzuki, the country’s largest carmaker, logged 10% growth in dispatches to its dealers at 176,318 units. The company’s utility vehicles like Brezza and compact vehicles like Swift saw demand outstrip supply. On Friday, the company claimed to have bookings for 350,000 cars pending for delivery.
SUV specialist Mahindra & Mahindra (M&M) recorded a growth of 31% in dealer dispatches to 71,624 units, including sales of electric SUVs. The month had also seen new editions of Thar, Bolero and Bolero Neo.
The share of SUVs within Tata Motors hit an all-time monthly high of 77%. The demand for SUVs helped the company post a 27% rise in wholesales in October to 61,295 units. Its EVs also posted the highest-ever monthly sales, achieving a penetration of 15% within its portfolio. Tata Motors claimed that it delivered over 1 lakh vehicles between Navratri and Diwali, marking a robust 33% y-o-y growth.
Hyundai Motor India (HMIL), the country’s fourth-largest carmaker, was the only brand to record a fall in volumes. The maker of Creta and i20 posted a 3% decline in sales to 53,792 units. The fall can be attributable to the phasing out of the existing Venue, which is to be replaced by a new version next week.
Tarun Garg, whole-time director and chief operating officer, HMIL, said, “We witnessed robust market demand and high consumer enthusiasm, leading to second-highest monthly sales. We expect to accelerate this momentum with the upcoming launch of the all-new Venue, which is already open for bookings.”
Toyota Kirloskar Motor (TKM) recorded the best growth among its peers in October. The maker of Fortuner and Innova posted a growth of 43% in volumes to 40,257 units.
Varinder Wadhwa, vice-president, sales-service-used car business, TKM, said, “The favourable economic environment during the festive season, reinforced by the GST reforms, boosted market confidence. At TKM, this has resulted in a significant rise in customer enquiries and order intakes, collectively driving our overall performance.”