Car sales fall for second consecutive month in August

According to industry estimates, 350,000-355,000 cars, sedans and utility vehicles were shipped from factories to dealers last month, down 1.7-3% from 361,123 vehicles sold in August 2023. Indian automakers mostly report wholesale shipments to dealers and not retail sales to customers.

Automakers are hopeful that demand will remain healthy in the coming years. Festive season during Ganesh Chaturthi in Maharashtra from 7th September and Onam in Kerala from 16th September.

In August, market leader Suzuki Maruti Sales fell 8.4% to 1,43,075 units. Partho Banerjee, senior executive director (marketing and sales), Maruti Suzuki, said, “We have calibrated our shipments with market demand to reduce dealer stocks. Our channel inventory has now come down to 36 days (from 38 days earlier). We want to maintain this level, we don’t want to reduce it further because reduced stocks could impact vehicle availability and lead to loss of sales during the festive season.”

Banerjee said the company has seen a good response to its vehicles in Kerala with the start of Chingham month on August 17. “Our bookings have gone up by 7% in Kerala. Onam this year is in September when we expect retail sales to pick up. Overall, our wholesale sales have been in line with retail sales in August which is a good sign,” Banerjee informed. The company has an order bank of 165,000 vehicles, at present.

In August, up to 55% of sales passenger vehicles In the domestic market, SUV sales declined by 8% last month to 49,525 units. The country’s largest carmaker, Hyundai, also reported an 8% drop in its local sales, said Tarun Garg, Whole-Time Director and Chief Operating Officer, Hyundai. “Off-road vehicles, led by models like CRETA, VENUE and EXTER, continue to be a key driver of growth, contributing 66.8% to domestic sales. We will soon be launching the bold new 6- and 7-seater SUV, Hyundai ALCAZAR, and we are confident that this new launch will garner a great response during the festive season.” Hyundai saw local sales decline by 8% last month to 49,525 units. Tata Motors It also reported a 3% drop, selling 44,142 units in August.

Toyota Kirloskar Motor (TKM), Kia and MG Motor India bucked the volume growth trend last month on the back of demand for their utility vehicles. While Toyota’s sales rose 36.5% to 28,589 units, Kia’s sales rose 17.2% to 22,523 units. JSW MG Motor sold 4,571 units, with over a third of these sales being electric vehicles.

Sabari Manohar, Vice President, Sales, Services and Used Vehicles, Toyota Kirloskar Motor, said, “As the festive season approaches, the demand for our products remains high and we are already witnessing increased consumer interest and increased footfall across our dealerships. SUVs and MPVs continue to contribute significantly to our sales figures, reflecting a growing preference for these segment vehicles. Interestingly, this trend is not limited to major urban centres but extends to tier 2 and tier 3 markets as well, demonstrating widespread customer acceptance of our offering.”

Hardeep Singh Brar, Senior Vice President and National Director, Sales and Marketing, said the company’s “strategic optimisation” of products made its vehicles attractive and value for money. “Kia India is committed to offering vehicles that respond well to the changing needs, preferences and aspirations of our customers and ensuring that we are also continuously expanding our presence in the country,” Brar added.

In the two-wheeler segment, TVS Motor Company which released monthly data on Sunday, saw sales rise 13% to 289,063 units due to recovering consumer demand in rural and urban markets. Vehicle sales Though it remained subdued, market leader Tata Motors reported a 16% drop in sales to 25,864 units in August.