SUVs drive passenger vehicle sales to new peak

Sales of cars, sedans and utility vehicles hit a record 361,717 units in September, rising 1.9% year on year on a high base, data released by industry body Society of Indian Automobile Manufacturers (SIAM) on Monday showed.

Quarterly and half-yearly sales of passenger vehicles touched new peaks at 1,074,189 units and 2,070,163 units, respectively, in the periods ended September, SIAM data showed.

The sales growth is almost entirely powered by robust demand for sports utility vehicles (SUVs) amid a spate of new launches.

Festive push
This has taken the utility vehicle segment’s share to a whopping 59.5% of overall passenger vehicles sales in the September quarter, even as there continued to be some pressure on sales at the entry-level.”Industry sales data shows that the consumer preference for SUV body type has increased dramatically. SUVs are now almost half of the PV market,” Shashank Srivastava, senior executive officer (marketing & sales),Maruti Suzuki, said. As many as 640,000 utility vehicles were sold in the September quarter with buyers making a beeline for models like Maruti Suzuki Brezza, Toyota Innova Hycross and Hyundai Creta, according to SIAM data.

Sales of hatchbacks and sedans remained subdued, together accounting for only about 37% of total volumes at 396,000 units during the quarter. “The passenger vehicle segment crossed two million-unit sales for the first time in the first half of the current financial year,” said Rajesh Menon, director general, SIAM.

Automakers in India mostly report wholesale dispatches from factories to showrooms and not retail sales to customers. The dispatches hit new peaks in the September quarter as carmakers sought to build stocks ahead of the key festivals of Dussehra and Diwali, as senior industry executives are optimistic about record retails.

“The festive season has started off well with Onam in Kerala and Ganesh Chaturthi in Maharashtra. Bookings and enquiries remain healthy,” Maruti’s Srivastava said. “With the semiconductor shortage easing, automakers have also been able to ramp up production and build stocks for deliveries during Dussehra and Diwali,” he added.