New Delhi, October 2024 — For the first time in ten quarters, sales from Indian car manufacturers to dealers have declined, according to data released by the Society of Indian Automobile Manufacturers (SIAM). The July to September quarter saw a 1.8% drop year-over-year, with total sales to dealers reaching approximately 1.06 million units.
This downturn follows a gradual slowdown from a 4.7% growth in the same quarter last year to just 3% in the previous quarter. The latest figures also align with a 4.5% drop in dealers’ sales to consumers, as reported by the Federation of Automobile Dealers Associations (FADA). Industry insiders attribute the decrease to unusually heavy rains in June and July, along with the shifting of the pre-festive season—a period traditionally seen as inauspicious for major purchases—entirely into September this year.
Sales of utility vehicles, including SUVs, which have been the industry’s driving force for three years, grew by just 9% this quarter, a marked slowdown from the 23.5% growth seen last year. SUV sales currently represent around one-third of the market, significantly benefiting manufacturers like Mahindra & Mahindra and Toyota. However, the SUV segment’s growth deceleration, coupled with a nearly 20% decline in small car sales, has impacted market leaders such as Maruti Suzuki and Tata Motors.
Despite the slowdown, SIAM President Shailesh Chandra expressed optimism for the coming quarter, anticipating a resurgence in sales fueled by festive season demand through much of October to December.
Key Points:
- Decline in Car Sales to Dealers: Indian carmakers reported a 1.8% year-on-year decline in sales to dealers for the July-September quarter, marking the first drop in ten quarters.
- Slowdown in SUV Demand: Growth in SUV sales, which have powered the industry for three years, slowed to 9% from 23.5% in the previous year.
- Impact of Weather and Timing: Heavier-than-usual rains in June and July, along with the pre-festive season falling entirely in September, affected sales.
- Broader Market Impact: Sales of small cars dropped by nearly 20%, impacting major players like Maruti Suzuki, Tata Motors, and Hyundai India.
- Outlook for Festive Season: SIAM President Shailesh Chandra expects a rebound in the October-December quarter as festive season demand boosts sales.
