For Passenger Vehicles, sales are expected to grow 6-8% YoY during the month of November largely driven by the festive season demand, analysts at Motilal Oswal Financial Services said.
For Passenger Vehicles, festive period growth was largely supported by healthy SUV (sports utility vehicle) demand and 25-30% higher discounts YoY for lower model, according to analysts at Motilal Oswal Financial Services.
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However, volume growth remained flat after the festive period due to continued weakness in the entry-level portfolio added analysts.
Strong demand impetus is likely to continue for passenger vehicles feels Himanshu Singh. The prices announced by OEMs are also positive.
Passenger vehicle manufacturers are generally seeing price increases in the range of 1-2%, says Singh. These prices will be positive as prices undertaken by PV manufacturers have lagged those undertaken by two-wheeler manufacturers despite rising commodity prices.
Further, Passenger vehicle manufacturers will try to advance inventory in December ahead of January prices. Thus the December sales are likely to get heavier and Passenger Vehicle manufacturers will start giving some extra discounts. An expected price increase of 1-2% and discounts of 1-2% from OEMs would mean big savings for customers, analysts say.
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While sales momentum may remain strong, however, Passenger Vehicles is also seeing a higher base from the previous year and hence overall growth may not appear large, says Singh. Post-Covid sales growth remained strong leading to a high base.
Amid strong demand Waiting Periods for key SUVs also continue to decline, analysts said. For example, waiting periods of M&M’s XUV 700 and Scorpio N reduced by 3-5 weeks and that for Maruti Suzuki India Ltd’s Ertiga, Jimny and New Brezza fell by 2-4 weeks according to Motial Oswal Financial Services. For Tata Motors Nexon it reduced by 2-4 weeks. The new Nexon currently has a waiting period of one month. Inventory levels for Tata Motors and M&M stood at 3-4 weeks, while Maruti has a slightly higher inventory of 4-5 weeks due to higher inventory of lower end vehicles.
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Updated: 29 Nov 2023, 16:30 IST