Leading automakers Maruti Suzuki, Hyundai and Tata Motors reported decline in wholesales in August as the companies curtailed vehicle dispatches amid drop in demand and to cut inventories at dealer level.
Market leader Maruti Suzuki India said its total domestic passenger vehicle wholesales were at 1,43,075 units last month as compared to 1,56,114 units in the year-ago month, registering a dip of 8%.
Sales of mini segment cars, comprising Alto and S-Presso, declined to 10,648 units last month as against 12,209 units a year ago.
Dispatches of compact cars, including Baleno, Celerio, Dzire, Ignis and Swift, also saw a decline of 20% to 58,051 units as compared to 72,451 units in the year-ago month.
Utility vehicle dispatches, consisting of Grand Vitara, Brezza, Ertiga, Invicto, Fronx and XL6, however rose to 62,684 units last month as compared to 58,746 units earlier.
In a virtual press conference, Maruti Suzuki India (MSI) Senior Executive Officer (Marketing & Sales) Partho Banerjee said the company reduced vehicle dispatches by 13,000 units in August.
The company’s inventory stock level, which was at 38 days in the beginning of August, has now come down to 36 days, he added.
“Our focus has been that our channel partners are able to have a reasonably healthy stock to sell the vehicles, so we are continuously trying to break the stocks down,” Banerjee said.
He noted that the company expects to maintain 36 days of stock at dealers going into the festive season.
Elaborating on the overall industry, Banerjee said SUVs accounted for around 55% of the overall passenger vehicle sales in August.
For Maruti, the share of SUVs has gone up to around 29% as compared to 25% last year, he noted.
Banerjee said the share of strong hybrid models in its portfolio has also risen to 16% from earlier share of 9%.
Besides, the company’s CNG penetration in overall sales has risen to 34%, he stated.
“Seeing such a response, we feel it’s an opportunity for us to further enhance our CNG volumes. So we are going to have a very strong marketing campaign with the city gas distributors across the country, wherever they have the gas pipelines. And we are going to start that from this month, in which we are going to have tie-ups with them in terms of marketing strategy,” Banerjee said.
Rival Hyundai reported an 8% dip in domestic dispatches last month at 49,525 units, from 53,830 units in the year-ago period.
Similarly, Tata Motors reported a 3% dip in passenger vehicle wholesales at 44,142 units last month as compared to 45,513 units in the year-ago month.
Kia India said its wholesales increased 17% year-on-year to 22,523 units in August.
The automaker had dispatched 19,219 units to dealers in August 2023.
“This success is a testament to the company’s strategic optimisation of the products, making our vehicles most compelling and value-for-money,” Kia India Senior Vice President and National Head of Sales & Marketing Hardeep Singh Brar said in a statement.
Toyota Kirloskar Motor reported a 35% growth year-on-year in total wholesales at 30,879 units in August.
The automaker had reported a dispatch of 22,910 units in both domestic and exports in the same month last year.
“As we approach the festive season, demand for our products remains buoyant, and we are already witnessing increased consumer interest and higher footfall across all our dealerships,” Toyota Kirloskar Motor Vice-President, Sales-Service-Used Car Business, Sabari Manohar, said in a statement.
SUVs and MPVs continue to significantly contribute to the company’s sales numbers, reflecting a growing preference for these segment vehicles, he added.
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 for TKM offerings, Manohar said.
JSW MG Motor India said its retail sales increased 9% year-on-year to 4,571 units in August.
The company had sold 4,185 units in August 2023.
In the two wheeler space, TVS Motor Company said its total sales increased 13% year-on-year to 3,91,588 units in August as compared to the same month last year.
The company had dispatched 3,45,848 units to its dealers in the same month last year.
