Motown September snippets

Sales numbers released for September saw a majority of carmakers bleeding as demand has not picked up, despite companies offering attractive discounts and freebies to lure buyers. The decline points out that the festive season, which was being seen as the only ray of hope for carmakers, may be weak and perhaps the slowest in years.
According to wholesale numbers released by companies, the majority of players are in the red as showroom walk-ins remain weak on account of higher interest rates and petrol prices as well as pessimistic sentiments. The economic slowdown has only made matters worse for companies as buyers continue to postpone new purchases.
Even two-wheeler companies have been battered as Hero MotoCorp, the country’s biggest seller, saw volumes crash by 26% at 4.04 lakh units against 5.49 lakh units in the same month last year.
The sales numbers record wholesale deliveries that companies make to dealerships and the fall in volumes is thus seen as alarming, considering that carmakers normally stock up dealerships ahead of the festive season. According to many dealers, inventory levels at their yards are high as demand remains weak.
Companies are witnessing a huge pressure on margins on account of massive discounts and fear that the freebies may have to be sweetened further to create a buying buzz in the festive season that starts around the middle of this month. Maruti is the only major player to have witnessed a growth in demand with numbers rising 13%. But a part of this is also because of a low base as the company’s operations were hampered around the same time last year due to a labour trouble at its Manesar plant. Mahindra, that recently launched a mini SUV Quanto, witnessed a growth of 22%.

Hyundai, the country’s second-biggest carmaker, saw a double-digit fall in volumes in September as sales slipped 14% to 30,851 units. The fall comes despite the addition of the Elantra sedan to its portfolio. The company expects the demand will improve on account of festive purchases.
Even Toyota, which has witnessed a healthy growth in volumes, saw a contraction in September. The company’s numbers fell 5% at 12,115 units.