NEW DELHI: Is the auto industry being hasty in calling out a festive cheer?
Auto manufacturers such as Maruti Suzuki, Hyundai and Hero MotoCorp may be insisting that all is well with a double-digit growth in wholesale dealer delivery numbers, but retailers are disagreeing and saying that market volumes, or those actually bought by customers, fell by 24% in October.
Dealers, represented by Federation of Automobile Dealers Associations (FADA), say that the “sentiment remains challenging” and “times are still turbulent” when it comes to retail sales.
According to October retail sales data released by FADA, sales of two-wheelers in that month were down by 27%, passenger vehicles (cars, SUV/UVs, vans) by 9%, commercial vehicles by 30% and three-wheelers by 65%.
FADA sources data from government’s retail tracker Vahan, which does not record numbers for Andhra Pradesh, MP, Telangana and Lakshadweep. However, while the dealers remain pessimistic, their report is in complete contrast to the wholesale delivery numbers presented by top automakers earlier this month.
According to numbers released by the companies, Maruti reported an 18% growth, Hyundai 13%, Tata Motors 79%, Kia 64%, and Hero Moto 35%. FADA says companies, “in many cases”, are forcefully flooding dealerships with heavy inventory and it will be a challenge to clear stocks if sales are not healthy.
Source From : Times Of India