From Maruti to Tata and more, less cheer and more caution as July sales dip

3 months ago | 32 Views

To reach the giddy car sales peaks of 2023 months was always going to be an arduous task. Demand peaked last year and a rush of new and updated models maintained the frenzy in the Indian passenger vehicle (PV) segment. What also helped in the year gone by was easing of semiconductor shortage issue and many manufacturers augmenting production capabilities. But while wait times have come down, has demand also turned for the south. July sales numbers reported by most car manufacturers show a year-on-year dip.

The month of July usually sees sales slow a tad bit as potential buyers tend to wait for the festive period to begin, looking forward to offers, discounts and various other benefits. Launches too are usually reserved for the pre-festive period of August. The 'wait and watch' consumer strategy does kick in. And yet, July of 2023 was buzzing louder than the month that just went by. Is it because last year saw pent-up demand fuelling sales growth? Or did a long list of newer models help maintain the frenzy at the time? Perhaps both and then some.

Crunching the numbers

Maruti Suzuki, the country's largest carmaker, reported it had sold 1,37,463 units in the month of July, down from 1,52,126 units in the same month of 2023. This is a decline of a little over nine per cent. Sales in the compact car sub-segment, which includes the recently-updated Swift and the very popular Baleno and WagonR, fell by almost 9,000 units to 58,682. Utiliy vehicles' sub-segment that has models like Brezza, Ertiga and Fronx, also saw a very noticable decline.

Hyundai also reported that its dispatched to dealers in July was marginally lower at 49,013 compared to 50,701 units in July of 2023. Tata Motors confirmed domestic sales in July fell by 11 per cent on a year-on-year basis. Among the major players then, Mahindra & Mahindra and Kia were in the green.

Charting a course through tempered waters

The Indian car market has entered into calmer territories. The calendar year so far has seen no major launches from the big-league players. Maruti Suzuki, the country's largest carmaker is reportedly planning to drive out the updated Dzire while Hyundai is prepping the Alcazar facelift. Tata Motors has put its efforts behind the Curvv and Curvv EV. But barring perhaps Mahindra Thar Roxx launch on August 15, and the introduction of the latest Hyundai Creta in January, the market is - and has been - rather muted in terms of injecting exciting products.

Compare this to 2023 when Maruti drove out the likes of Fronx and Jimny, Hyundai brought out the all-new Exter, Honda introduced Elevate mid-size SUV, Kia Seltos SUV was updated and Tata Motors refreshed the Nexon and Nexon EV. There were plenty more models too, both in mass-market and luxury segments.

Offers served on a platter

Covid times saw demand for personal mobility rise significantly. This benefited both the new and used-car market. But demand often outstripped supply, making offers and discounts an alien concept. Good news though that these are back as manufacturers look at clearing inventories. Barring a few enormously popular and high-demand models, many new car models can be had with a long list of benefits. Is it working? The answer may lie in the months leading up to the close of the Indian festive period.