Auto Retail Sales: Two-Wheelers Beat Passenger Cars In Festive October
Passenger car sales at dealerships lagged demand for two-wheelers in the festive month of October as a global chip shortage continued to hurt production.
Two-wheeler registrations—a measure of sales at dealerships—rose 5.63% over the preceding month, the first increase since July, according to data collated from the website of the Ministry of Road Transport and Highways. Retail sales of passenger cars, however, fell for the third straight month.
Total vehicle registrations rose 5.1% over the preceding month but fell 4.9% year-on-year to 13.71 lakh units in October, the ministry’s data from 1,493 regional transport offices in 33 states and union territories showed.
Overall retail sales are still lower than July, the highest monthly registrations recorded in the ongoing financial year.
Factory-gate shipments improved over September for most automakers, aided by a low base. But Maruti Suzuki India Ltd. said the shortage of electronic components—that began in December last year—continued to affect production in October. The nation’s largest carmaker had earlier said production would slump to 60% of the usual level in the month that marks the festive period, considered auspicious for new purchases and crucial for making up for sales lost after the second wave of Covid-19.
Inventory levels— the gap between wholesales and retail sales—at dealerships across categories inched up ahead of the Diwali festival, which witnesses maximum sales.
Here’s how each segment fared in October…
Among the companies tracked by BloombergQuint, retail sales of Tata Motors Ltd., Honda Motor Co. and Skoda and Volkswagen rose both month-on-month and over a year earlier in October.
Demand revived for two-wheelers with sales of major manufacturers rising over the preceding month, barring Bajaj Auto Ltd. and Royal Enfield.
Commercial vehicle registrations jumped over the year earlier due to the base effect, but fell month-on-month. Sales have been impacted because of rising fuel prices.
Tractor registrations declined for the third consecutive month even as inventory built-up. Buying ahead of the Rabi season was missing in October. Demand, however, is expected to rebound after Diwali when the sowing season starts.