Money Management

No car boom, volumes fell 24% in October: Dealers

NEW DELHI: Is the auto industry rushing to throw a festive cheer?
car manufacturers such as Maruti-Suzuki, hyundai and Hero MotoCorp may insist that all is well with double-digit growth in shipments from wholesalers, but retailers disagree and say market volumes, or those actually purchased by customers, fell 24% in October.
Dealers, represented by the Federation of Automobile Dealers Associations (FADA), say “sentiment remains difficult” and “times are still choppy” when it comes to retail sales.
According to October retail sales data released by FADA, sales of two-wheelers in that month were down 27%, passenger vehicles (cars, SUVs/UVs, vans) by 9%, commercial vehicles by 30% and three-wheelers by 65%. %.
FADA pulls data from government retail tracker Vahan, which does not record figures for Andhra Pradesh MP, Telangana and Lakshadweep. However, although dealerships remain pessimistic, their report stands in stark contrast to the wholesale delivery figures presented by major automakers earlier this month.
According to figures released by the companies, Maruti recorded growth of 18%, Hyundai 13%, Tata Motors 79%, Kia 64% and Hero Moto 35%. According to FADA, companies “in many cases” are forcefully flooding dealerships with heavy inventory and it will be difficult to liquidate inventory if sales are not healthy.