Auto Industry Sees Mixed Sales Performance Amid Inventory Cuts

Maruti Suzuki India (MSI) and Hyundai reported subdued sales for October as they reduced dealer dispatches to manage inventory levels. MSI's domestic sales saw a decline, although overall sales, including exports, reached a record high. Utility vehicle sales surged for Mahindra and Hyundai during the festive season.

Auto majors Maruti Suzuki India and Hyundai reported subdued sales performances for October as they strategically reduced dealer dispatches to manage inventory build-up. Maruti Suzuki India's domestic passenger vehicle wholesales experienced a 5 per cent dip compared to the same period last year. Despite this, their total sales, including exports, hit a record high of 2,06,434 units, marking a 4 per cent year-on-year increase.

MSI's Senior Executive Officer, Partho Banerjee, highlighted that dealer stocks had been adjusted by over 40,000 units through calibrated production supplies, resulting in almost a month's worth of inventory. However, sales of compact cars like the Baleno and WagonR fell significantly, while utility vehicles, such as the Brezza and Grand Vitara, witnessed a sales surge.

Hyundai also experienced a slight increase in domestic sales, with the CRETA achieving record-breaking numbers. SUVs have become a core component of Hyundai's sales strategy, accounting for a significant portion of their output. Mahindra & Mahindra reported record-breaking SUV sales, supported by high bookings during the festive season, while Tata Motors saw a slight dip in domestic sales.

(With inputs from agencies.)