Car makers break festive season records, do record sales of Rs 1.3 trillion

Driven by consumer demand, automobile companies sold 1.14 million vehicles, averaging nearly 13,000 units daily

The Indian car industry witnessed a surge in sales during the festive period between Onam and Bhai Dooj, achieving a record turnover of Rs 1.3 trillion, according to a report by The Times of India (TOI). Driven by consumer demand, companies retailed 1.14 million vehicles, averaging nearly 13,000 units daily. This success reflects the car industry's recovery after Covid-19-related disruptions. During the same period last year, the Indian car industry recorded a turnover of Rs 85,700 crore.

SUVs drove demand during this festival season, contributing significantly to the year's turnover. Maruti Suzuki highlighted the growing consumer inclination toward feature-loaded SUVs. The average price for these vehicles this year was Rs 11.5 lakh, up from Rs 10.5 lakh last year.

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Even after Covid-19-related restrictions were lifted in 2021, the car industry faced challenges due to supply constraints, specifically semiconductors. These restrictions were caused by the war in Ukraine and curbs on certain supplies from China. However, the supply is normalising now, especially for mainstream players, and the industry is jumping back with new supply channels available for automobile manufacturers.

According to the TOI report, Hyundai India is projecting an 8.5-9 per cent growth by the end of the year, with SUVs contributing significantly to sales. The company retailed 160,000 vehicles during the festive period, witnessing a 9 per cent growth compared to last year. Tata Motors also reported a 15 per cent growth during the festive season, indicating a positive trajectory for the company.

Despite the festive success, industry players are remaining cautious about future demand. Companies anticipate relatively subdued wholesales in November and December as they manage inventory levels towards the year-end.