Year end discounts might result in record automobile sales in India, says report

The passenger vehicles segment, comprising cars, SUVs and vans, closed November with sales of more than 310,000 units, making it the sixth straight month with sales crossing the 300,000 mark. December is expected to be yet another month of high sales as the industry works to improve deliveries and reduce the waiting period for cars.

The automobile sector is expected to continue its winning trajectory in December 2022 sales figures as several analysts expect growth to persist across segments year-on-year (YoY). However, they are skeptical on a month-on-month basis, estimating a fall in the cars and tractors segment.

Resources stated that in December 2022, PV (passenger vehicle) volumes are likely to be higher YoY, though volumes would be lower MoM due to production constraints. Further, tractor volumes are likely to be better on a YoY basis but decline MoM due to seasonality.

The first big thing of 2023 in India would be the automakers’ December monthly sales announcement which will begin on January 1st. Generally, auto companies announce their monthly sales figures between the 1st to 3rd of every month. Emkay Global Financial Services channel checks indicate a higher year-on-year volume in December for auto firms, however, is expected to be lower on a month-on-month basis due to production constraints. Wedding season and favourable base likely influence December sales performance.

Data collected until Friday showed December retailing of passenger vehicles could touch the 400,000 mark in the world’s fourth largest automative market. In December 2018, retail for passenger vehicles were at 382,000 which was a monthly record until now.

For most brokerages, Maurti Suzuki was among the preferred pick in the PV segment, owing to a strong new model pipeline and market share gains led by new models and plugging of product gaps. While brokerages are also bullish on auto stocks like Tata Motors, Ashok Leyland, and TVS Moto