Why Did Passenger Vehicle Sales Soar 21% in November?
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Synopsis
India's passenger vehicle sales surged by 21% in November, reaching approximately 4.25 lakh units, thanks to reduced prices from GST cuts. Maruti Suzuki, Tata Motors, and Mahindra led the growth, indicating a strong market sentiment for the auto industry.
Key Takeaways
- Passenger vehicle sales increased by 21% in November.
- GST cuts played a crucial role in boosting demand.
- Maruti Suzuki reported high market confidence.
- Expectations for December remain strong.
- Tata Motors and Mahindra also saw significant sales growth.
New Delhi, Dec 2 (NationPress) The passenger vehicle sector in India experienced remarkable growth in November, with domestic wholesales reaching approximately 4.25 lakh units, reflecting a year-on-year increase of 20.7%.
This surge in demand was primarily fueled by lower prices resulting from the recent GST rationalisation, which has motivated consumers to purchase new vehicles.
Maruti Suzuki India (MSIL) reported that the market outlook remains exceptionally positive.
Partho Banerjee, senior executive officer of marketing and sales at MSIL, stated during a virtual press conference that eight of the company’s models are entirely sold out at the factory level, leaving no units available for dispatch.
He further mentioned that dealers currently possess around 80,000 units in stock, which equates to 19 days of inventory, while an additional 40,000 units are on their way.
MSIL’s domestic wholesales rose by 21% year-on-year to 170,971 units in November.
Banerjee also indicated that December is anticipated to be another robust month as the production team is working diligently to satisfy demand.
Overall, he estimated that the industry's passenger vehicle wholesales in November this year were around 425,000 units compared to about 352,000 units in November of the previous year.
For the entire financial year FY26, he predicts the auto industry will expand by 5-6%.
Earlier data from the Society of Indian Automobile Manufacturers (SIAM) indicated that domestic PV wholesales had increased by 17.2% year-on-year in October, reaching 460,739 units, bolstered by festive demand and GST reforms.
Among individual manufacturers, Tata Motors Passenger Vehicles secured the second position in domestic wholesales for November.
The company dispatched 57,436 units, representing a 22% increase from the previous year. Mahindra & Mahindra closely followed with 56,336 units, marking a growth of 21.9%.
Hyundai Motor India also reported encouraging figures, with domestic wholesales rising 4.3% to 50,340 units.
Toyota Kirloskar Motor disclosed domestic wholesales of 30,085 units in November, an increase of 19.5%.
Varinder Wadhwa, vice-president for sales, service, and used car business, stated that strong festive demand, GST reforms, and the success of new models like the Urban Cruiser Hyryder Aero Edition and Fortuner Leader Edition have contributed to the company’s growth.
Point of View
The recent surge in passenger vehicle sales in India reflects a positive shift in consumer behavior, driven by favorable policy changes. This growth is a promising sign for the sector, suggesting resilience and adaptability amidst challenges.
NationPress
02/12/2025
Frequently Asked Questions
What caused the increase in passenger vehicle sales?
The increase in passenger vehicle sales was primarily driven by reduced prices following recent GST rationalisation, encouraging more customers to purchase new vehicles.
Which companies reported significant sales growth?
Maruti Suzuki, Tata Motors, and Mahindra & Mahindra were among the companies that reported significant growth in domestic wholesales in November.
What is the expected growth for the auto industry in FY26?
The auto industry is expected to grow by 5-6% in the financial year FY26, according to industry experts.
How did festive demand affect vehicle sales?
Festive demand positively influenced vehicle sales, contributing to an overall increase in the number of passenger vehicles sold during the festive season.
What are the current inventory levels for dealers?
Dealers currently have around 80,000 units in stock, which is equivalent to 19 days of inventory, while another 40,000 units are en route.
