Monthly Auto Sales - October 2023 By ARETE Securites
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In a run up to the major festivities, vehicle dispatches from OEMs to dealers during October 2023 were on the higher side across all the segments, but except for tractors. Strong rural demand and unfettered production boosted the wholesales to a great extant.
As the final phase of the 2023 festive season is drawing to a close with Dhanteras and Diwali falling in the first fortnight of November, OEMs are pushing the inventory in anticipation of a strong demand and record-high festive season sales. This may make October as the last month of big wholesales with OEMs set to re-align their inventories after the festive season.
Automobile Sales October-23
PV Segment
against 3.36 lakh units in the same month last year. For every month, this year has been the highest ever, due to which this year looks better so far. The first 15 days of November are auspicious especially for the northern and central part of the country and Sales of November will depend on how these first 15 days play out. If the retail is a little lower than expected, then we might see an impact on the wholesale numbers going forward.
As per VAHAN, over 3 lakh passenger cars (each month) have been registered in the past three months. These numbers indicate a healthy recovery for the PV segment in India, with total car sales in the first 10 months of the calendar year standing at around 3.4 million units, registering an approximate 9% YoY growth.
CV Segment
CV wholesales grew double digit in October. Looking ahead, continuing infrastructure thrust by the Government and improving consumption auger well for the CV industry, while rural demand remains to be a key monitorable, as monsoon has been below average.
2W Segment
The two-wheeler dispatches were at 18 lakh units in October 2023. All the two-wheeler OEMs registered growth on a YoY basis. Market leader Hero MotoCorp reported a double-digit growth in domestic sales, with both the motorcycle and scooter segments in green. However, the demand in the commuter segment is a concern. The wholesales reflected healthy growth of about 11% on a sequential and about 0% on a YoY basis, with OEMs building up inventory in anticipation of strong retail during the festive season.
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