According to data from the Society of Indian Automobile Manufacturers (Siam), 347,522 PV units were dispatched by original equipment manufacturers (OEMs) in November
Photo: Bloomberg
Passenger vehicle (PV) dispatches grew by 4.1 per cent—the highest ever in November—even as retail sales fell by 14 per cent in the same month. This may lead to a further rise in inventory levels if retail does not pick up in December.
According to data from the Society of Indian Automobile Manufacturers (Siam), 347,522 PV units were dispatched by original equipment manufacturers (OEMs) in November, marking a growth of 4.1 per cent over the previous year. Notably, the festivals were split between October and November in 2023, indicating a high base.
This could lead to a rise in inventory levels at the dealer end as retail sales in November remained sluggish. The Federation of Automobile Dealers Associations (FADA) noted earlier this week that weak market sentiment, limited new launches, and the early festive push in October dampened November’s performance. “Despite inventory correction (down by around 10 days), stock levels continue to remain high at 65–68 days. FADA continues to urge PV OEMs to rationalise supply to ensure a healthier inventory position entering the new year,” it had said.
Maruti Suzuki India, the country’s largest PV player, said on December 1 that its inventory levels stand at 30 days. Similarly, the country’s largest electric vehicle player, Tata Motors, also reported current inventory levels of 30 days.
Auto OEMs stated that they continuously compare retail and wholesale data on a monthly basis, including Vahan data and dealer dispatches. “Every OEM does this,” said an industry insider.
FADA president CS Vigneshwar, however, told Business Standard that “We are stuck with a 65-day inventory at an overall industry level for PVs, and we won’t know for sure where this would go until the end of this month. Sixty-five days could perhaps well be the historical high for December.”
Rajesh Menon, director general, Siam, said on Friday that the demand momentum seen in October during the festive period continued in November for the industry as a whole, although the two-wheeler and three-wheeler segments witnessed minor de-growth in November.
“Passenger vehicles posted their highest-ever sales for November in 2024, at 3.48 lakh units, with a growth of 4.1 per cent compared to November 2023. Though the Diwali festival did not fall in November in 2024, the two-wheeler segment posted sales of 16.05 lakh units, crossing the 16 lakh mark for the first time in a non-Diwali November. However, there was a de-growth of minus 1.1 per cent compared to November of the previous year for two-wheelers. Three-wheelers marginally de-grew by minus 1.3 per cent compared to November last year, with sales of 0.59 lakh units in November 2024,” Menon said.
In the two-wheelers segment, scooter dispatches rose by 11.7 per cent, while motorcycles fell by 7.5 per cent. Moped dispatches grew by 5.6 per cent. Companies like Bajaj Auto saw a significant rise in scooter dispatches—25,910 units compared to 8,472 units in the same period last year, riding on the success of Chetak.
Retail sales showed mixed performance across segments: two-wheelers grew by 15.8 per cent, three-wheelers by 4.23 per cent, while PV and commercial vehicles (CV) declined by 13.72 per cent and 6.08 per cent, respectively.
Month-on-month (MoM) comparisons also reflected uneven results in retail, with two-wheeler retail sales growing by 26.67 per cent, but PV and CV segments contracting by 33.37 per cent and 15.85 per cent, respectively.
“The late timing of Diwali in October led to festive registrations spilling over into November, slightly boosting numbers but not sufficiently offsetting weaker marriage season demand. Rural demand offered limited support, particularly in the two-wheeler segment, but failed to provide a substantial lift for PV and CV categories,” FADA said.
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