InvestorQ : How have been the auto numbers for the month of September 2020?
Arya Nanda made post

How have been the auto numbers for the month of September 2020?

Anjana Aiyar answered.
7 months ago

Most of the passenger vehicle manufacturers posted robust growth in factory dispatches in the month of Sep-20 as companies were busy building dealer-inventory ahead of an expected spurt in sales as the festive Navaratri and Diwali season sets in.

If you combine the dispatches of Maruti Suzuki, Hyundai Motors, M&M, Honda Cars and Toyota India; the total dispatches for Sep-20 stood at 250,073 vehicles registering a growth of 30% on a YOY basis. Of course, on must factor that the base was too low due to COVID related concerns.

Dealer data tells a different story. According to auto dealers, retail sales in September were not as robust as the factory dispatches data indicated. However, dealers also confirmed that this scenario could change sharply once the inauspicious Shradh period was over.

Maruti Suzuki reported a 34% growth in domestic passenger car sales at 147,912 units. In terms of specific models, dispatches of Alto, S-Presso, WagonR, Swift and Baleno were up 44%. Maruti expects the numbers to touch 180,000 in October month.

The second largest auto producer in India, Hyundai of South Korea, posted 24% growth in dispatches at 50,313 vehicles. Kia Motors of Korea reported record monthly sales of 18,676 units in Sep-20. Its SUV, Sonet model, has become a bit hit in India.

The growth in M&M numbers was a lot more staid at just 4% in passenger vehicle sales reporting sales of 14,857 units in Sep-20. The company has seen a sharp rise in demand for its Scorpio and Bolero utility vehicles. Thar could be the real test in the coming months.

Honda also reported 10% higher dispatches in Sep-20 at 10,199. Honda is also betting in a big way on festival demand from Navratri and Diwali.