Carmakers hit sales record in October

Indian carmakers reported record monthly sales in October, buoyed by strong rural demand and improved chip supplies as pandemic-induced supply chain snarls eased, lifting festive sentiment.

- Alisha Sachdev

Wholesale passenger vehicle dispatches, the number of cars shipped by automakers to their dealerships, grew 16% in October to 390,000 units from 336,679 in the year earlier.

Industry executives, however, cautioned against interpreting the growth as the sole reflection of demand, as automakers had grappled with inventory challenges last year due to chip shortages. Growth in retail sales in October was, however, a more moderate 5.8%, suggesting carmakers were building inventory at dealerships to cater to the expected festive demand surge in the first half of November, coinciding with the Diwali festival, a time when consumers in large parts of India splurge on high-value purchases such as cars and homes.

Automobile production levels, constrained in recent years due to pandemic-induced disruptions, are rising, helping meet the pent-up demand that has accumulated.

November sales will serve as a critical gauge for carmakers to assess demand and shape their future production plans.