Prior to the busiest festival season, data on domestic PV sales and goods and services tax (GST) collection indicated that the country was experiencing a stable macroeconomic environment.
While the monthly PV wholesales total of 363,733 units in September set a new record, the GST mop-up of Rs 1.62 trillion, up 10.2% year over year (Y-o-Y), came in third place. In the first half of 2023–24, the average monthly gross GST collection was Rs 1.65 trillion, which was 11% more than in H1FY23.
For the second consecutive month, UPI transactions again exceeded 10 billion, though the 10.56 billion count was a little lower than in August. The value of these transactions, at Rs 15.8 trillion, was slightly higher.
The monthly domestic PV wholesale figure increased year over year by 2.36 percent. This increase may be linked to the start of the festival season, higher production due to better chip availability, and high demand for SUVs (sports utility vehicles). 360,897 units were sold at their highest point in domestic PV sales in August of this year.
The total PV wholesale statistic exceeded 2 million for the first time in any financial year during the first half of FY24. According to Shashank Srivastava, senior executive officer for marketing and sales at Maruti Suzuki India, the festivals were a major factor in the spike in PV sales.
In western India, the month of September included Ganesh Chaturthi and Janmashtami, but in Kerala, the fortunate Chingam month came to a conclusion on September 17.
Due to the significant base effect, Srivastava observed that the year-on-year increase in September appeared rather “muted”. He explained that the number for September 2022, 355,353, was especially high.
The retail sector is currently stocking up for greater sales during Navratri and Diwali, especially in the northern, eastern, western, and central parts of the nation.
Currently, there is enough stock for 30 days at PV shops. “This is obviously quite high. We first saw this stock level roughly five years ago. However, the volume was low at the time,” said Srivastava. The top MSIL executive emphasized that the build-up due to the festival season did not make the existing stock levels a reason for concern.
The majority of manufacturers, according to Srivastava, have successfully managed the semiconductor scarcity issue, which has significantly increased SUV output. This was a problem that several producers, including Maruti Suzuki, encountered, especially in the first few months up to July. In India, the SUV market has shown the highest increase in recent quarters.
The PV sales for the auto industry were 2.072 million units in the first half of FY24. “This is the first time that the two million number has been cracked in H1 of any year,” he said. H1 sales from the previous year totaled 1.937 million.
3.091 million PV units were sold by the vehicle sector between January and September of 2023. “The 3 million number mark has already been reached for the first time between January and September…This means that both for the calendar year and the financial year, we are on track to meet the 4 million level,” Srivastava added.
Domestic PV sales for Maruti increased 1.64 percent year over year to 150,812 units in September. Hyundai, the second-largest automaker in India, recorded a growth in sales of 9.48% year over year in September.
Hyundai Motor India’s chief operating officer (COO), Tarun Garg, reported that the company’s “highest ever” monthly sales in the nation were recorded in September since its foundation. “Strong sales momentum has been generated by the ongoing festival season… Because of the outstanding consumer reaction to the recently released Hyundai Exter, our already strong SUV offering has been strengthened even further. Over 65% of our domestic sales are now made up of SUVs, he claimed.
Tata Motors, on the other hand, revealed that their PV sales in September decreased by 5.32 percent year over year. In Q2FY24, it introduced the next generation Nexon (based on an internal combustion engine) and Nexon electric vehicle (EV).
According to a statement from Tata Motors’ managing director of the PV and EV division, Shailesh Chandra, “We proactively reduced supplies of the outgoing models this quarter to enable a smooth transition to the new generation models.” In light of the start of delivery for their new-generation products, he anticipates increased volumes during this festival season and beyond.
The third-largest PV manufacturer in India, Tata Motors, reported a 5.32 percent year-over-year decline in PV sales in September. In Q2 of FY24, Tata Motors introduced the new generation Nexon (based on an internal combustion engine) and Nexon electric vehicle (EV). In order to facilitate a seamless transition to the new generation models, “We proactively cut supplies of the outgoing models this quarter.
Moving forward, we anticipate increased volumes during this holiday season and beyond as deliveries for our exciting new-generation goods begin. In a statement, Tata Motors’ Managing Director of PV and EV operations Shailesh Chandra remarked.
In September, Mahindra & Mahindra had a 20% year-over-year increase in car sales. According to M&M’s president of the automotive sector, Veejay Nakra, the company sold SUVs for a third consecutive month at “highest ever” levels. In order to fulfill the high demand throughout the festival season, he added, “While demand for our key SUV brands continues to be strong, we are closely monitoring the availability of semiconductors and select components.”
According to Som Kapoor, an automotive associate at EY Parthenon, the market is experiencing strong demand, and with the festival season quickly approaching, the prognosis is “exceptionally” favorable. “Bookings are abundant in the marketplace, and there is palpable excitement about converting these reservations during the festival period,” the speaker said.
The first 15 days of October are typically seen as being less fortunate for purchases, therefore we must pay special attention to dealer inventory levels during this time. Working capital may see some brief restrictions while we work to increase inventory levels. However, we are poised for an amazing year, maybe attaining our best-ever performance in passenger car sales, thanks to the industry’s commitment to manage this problem, he continued.