Heavy rains, low consumer sentiment, and intense competition posed challenges but dealers managed to sustain sales through strong promotions and incremental discounts…reports Asian Lite News
Retail sales of passenger vehicles in India, including cars and SUVs, posted a 10 per cent jump to 3,20,129 vehicles in July this year compared to 2,90,564 in the same month last year, driven by new model launches and higher discounts, according to the Federation of Automobile Dealers Associations (FADA).
“Dealers reported benefits from good product availability, attractive schemes, and a wider range of products,” the Federation of Automobile Dealers Associations (FADA) Vice President C S Vigneshwar said in a statement.
Heavy rains, low consumer sentiment, and intense competition posed challenges but dealers managed to sustain sales through strong promotions and incremental discounts, he added.
However, Vigneshwar also pointed out that the growth is accompanied by high inventory levels which have surged to a historic high of 67-72 days, equivalent to Rs 73,000 crore worth of stock.
“This poses a substantial risk for dealer sustainability, necessitating extreme caution. FADA urges passenger vehicle (PV) original equipment manufacturers (OEMs) to be vigilant about potential dealer failures due to these high inventory levels,” he stated.
Two-wheeler retail sales in July stood at 14,43,463 units, an increase of 17 per cent over 12,31,930 units in July 2023.
The segment experienced robust growth due to a thriving rural economy, the positive effect of a better monsoon, and the government’s support programmes enhancing rural incomes, Vigneshwar observed.
“The introduction of new products and better stock availability also contributed significantly, despite market slowdowns in certain regions, excessive rains, and increased competition,” he added.
Commercial vehicle (CV) retail sales grew 7 per cent year-on-year to 80,057 units last month.
“Positive factors included growth in the construction and mining sectors, while challenges such as continuous rainfall, negative rural market sentiment, poor finance availability, and high vehicle prices were also noted,” Vigneshwar said.
Tractor sales declined 12 per cent year-on-year to 79,970 units in July.
FADA, which collated vehicle registration data from 1,568 out of 1,645 RTOs across the country, noted that the near-term outlook across the auto retail segments shows a blend of optimism and caution.
Two-wheeler sales are expected to be buoyed by factors such as a growing rural economy, positive monsoon impacts and the introduction of new products. The festive season beginning after the Aadi festival and favourable agricultural conditions are also likely to contribute to increased sales.
On the other hand, heavy rainfall and inconsistent monsoon patterns may dampen demand in certain areas. FADA noted that the PV segment could see mixed results in the near term.
High inventory levels pose a significant risk and it is crucial for PV OEMs to avoid further increases in stock to prevent financial strain on dealers, FADA said.
The CV segment faces a modest outlook, with positive factors including improved market reach and the festive season, but challenges such as bad freight rates and ongoing rainfall pose a risk, it added.
Tata Curvv EV Arrives
India’s homegrown automotive company Tata Motors launched its new vehicle Tata Curvv EV in the SUV segment on Wednesday with prices ranging from Rs 17.49 lakh to Rs 21.99 lakh (ex-showroom).
Tata Curvv EV offers two battery pack choices to its customers – 40.5kWh and 55kWh – which provide a range of 502 km and 585 km (ARAI certified, MIDC Part 1), respectively. It can touch 0-100km/h in 8.6 seconds.
The company said its specially designed fast-charging capability ensures a top-up of 150 km range in just 15 minutes.
Tata Curvv EV comes with 3 drive mode combinations as standard (eco, city, and sport), multi-mode regen with paddle shifters, high ground clearance of 190 mm for Curvv.ev 45 and 186 mm for Curvv.ev 55.
Tata Curvv EV comes loaded with features such as 31.24 cm cinematic touchscreen by Harman, 26.03 cm digital cockpit, cinematic experience with arcade.ev and its host of 20+ apps, JBL cinematic sound system, advanced OTA capabilities, V2L and V2V as standard across all personas, smartwatch connectivity and Powered Tailgate with gesture activation.
The vehicle is equipped with automatic headlamps, rain-sensing wipers, fully automatic temperature control with express cooling, coupled with cruise control, keyless entry and push-button start. The Curvv.ev also scores high on convenience as well.
Tata Motors said It will be introducing the product in 2 petrol (The new hyperion gasoline direct injection engine and the 1.2 L revotron petrol turbocharged engine) and 1 diesel option (1.5 L Kryojet diesel engine) – all paired with both a 6-speed manual and a 7-speed dual-clutch automatic transmission.
Wednesday also marks the debut of the indigenously developed first GDi engine offering – the Hyperion Gasoline Direct Injection engine.
The Curvv will be offered in four personas – smart, pure, creative, and accomplished and an enticing colour palette featuring gold essence, daytona grey, pristine white, flame red, pure grey, and opera blue.
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