Signs of auto sector picking up speed in November, forecast of rapid growth in sales

Signs of auto sector picking up speed in November, forecast of rapid growth in sales

The pace of sales started in the festive season in the auto sector continues in the month of November as well. Market watchers estimate that during the month the sector’s sales The pace will continue. One report estimated that domestic passenger vehicle Sales of SUVs may grow by more than 30 percent year-on-year in November, while sales figures in the commercial vehicle category may remain above 10 percent. According to the report, this has been estimated due to strong booking orders and increase in vehicle production. Earlier, Tata Motors Managing Director Shailesh Chandra had estimated that sales could reach a record level in this financial year.

Fear of slowdown in tractor sales

Brokerage firm MK Global Financial Services said in its report that tractor sales are likely to remain sluggish during this period. Additionally, vehicle discounts available have come down in the last few months and remain very low compared to the previous high levels. The country's vehicle manufacturers will release vehicle sales figures for the month of November on December 1. MK Global said that the passenger vehicle segment is likely to register high growth due to the large order book in November, while the commercial segment and the two-wheeler segment may see good growth.

Record sales of passenger vehicles possible this year

Sales of passenger vehicles in the country can reach a record level of 38 lakh units in the current financial year. However, this pace of growth is unlikely to continue in the next financial year 2023-24 as the pent-up demand has already been released. Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles gave this estimate recently. Chandra said that passenger vehicle (PV) sales may decline in the third quarter of the current financial year and pick up again in the fourth quarter. But the growth rate in FY 2023-24 will also depend on new norms like Bharat Stage-VI (BS-VI) and new safety regulations coming into effect from next year.

According to SIAM, an organization of vehicle manufacturers, 30,69,499 passenger vehicles were sold in 2021-22. The highest sales were in 2018-19 when 33,77,436 vehicles were sold. Talking about the outlook for the rest of the year, Chandra said, "I don't see the demand slowing down, although there could be some moderation in sales in this quarter." But it will increase again in the next quarter. Talking about demand in the third quarter, he said the momentum the industry has seen over the past few quarters is going to be sustained.

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