The automotive retail sales in India is back in the green, and for October 2024, the convergence of Navratri and Diwali has helped register robust growth across segments.

According to the latest data released by the Federation of Automobile Dealers Association (FADA), a total of 2.8 million vehicles were registered last month, up 32.14 percent YoY, compared to 2.14 million vehicles sold last year.

This included 2 million two-wheelers (+36.34 percent YoY); 122,846 three-wheelers (+11.45 percent YoY); 483,159 passenger vehicles (+32.38 percent YoY); 64,433 tractors (+3.08 percent YoY) and 97,411 commercial vehicles (+6.37 percent YoY).

C S Vigneshwar, President, FADA stated that festivities traditionally account for 30–35 percent of total annual auto sales. The industry was keenly observing how October would unfold.

He said, “With dealers entering this crucial period fully committed and carrying all-time high inventory levels, the month did not disappoint!”

FADA shared that the rural market once again played a leading role in driving growth, particularly in the two-wheeler and passenger vehicle segments. Additionally, the Government of India's announcement of an increase in the Minimum Support Price (MSP) for Rabi crops further boosted market sentiments.

The two-wheeler sales were driven by festive schemes, discounts along with new model launches that drove consumer interest. The dealers were able to support the demand on the back of better stock availability and suppliers from OEMs.

In the passenger vehicle segment too, aggressive offers, attractive schemes and new model introductions further stimulated demand.

“Enhanced vehicle availability and strong market interest, especially for SUVs and new products, also contributed to the exceptional sales. However, despite strong sales, PV OEMs continue to heavily stock dealers, resulting in inventory levels decreasing by only five days, with overall inventory still at a high of 75–80 days. This may thus lead the season of substantial discounts to continue until the end of the calendar year,” cautioned Vigneshwar.

The commercial vehicle segment growth was driven by various factors such as supportive agricultural markets and bulk purchases, particularly for container movements.

FADA states that however dealers faced challenges such as slow demand, sluggish construction activities, financial issues among customers and increased vehicle prices leading to higher EMIs.

“Overall, while there were areas of growth, the CV market faced headwinds that tempered its overall performance,” he shared.

Great Indian wedding

While the automotive industry has been seeing a mixed results in terms of retail demand, the expectation for the rest of the calendar year remains positive. An estimated 4.8 million weddings are scheduled across the country in November and December 2024. This is expected to bring an ‘unprecedented surge’ in demand for wedding-related goods and services.

For the automotive industry this could further amplify demand for two-wheelers and passenger vehicles. In the CV segment, while supportive agricultural markets and continued bulk purchases may contribute positively, dealers remain vigilant due to factors like sluggish construction activities, financial constraints among customers and an anticipated decrease in demand post-festivities.

But on the other hand, for the passenger vehicle segment, there are apprehensions about potential slowdowns caused by customers postponing purchases in anticipation of better year-end discounts. FADA also urges, PV OEMs to further rationalise supply.

The auto retail body states that while the industry is optimistic about near-term growth driven by the wedding season and favourable market conditions, dealers are mindful of potential challenges that could affect sales momentum as the year concludes.

‘The mixed sentiments reflected in the survey highlight the need for strategic planning and cautious optimism as the auto sector navigates the remaining months of the year,’ the note concluded.

Representational image courtesy: TomFlick/Pexels

Skoda Auto Volkswagen India (SAVWIPL), a leading passenger vehicles manufacturer, has begun local production of the Skoda Kylaq compact SUV at its Chakan facility in Pune.

The Skoda Kylaq is the company’s fifth model on the MQB-A0-IN platform and is the most affordable model in its portfolio. Powered by Skoda's 1.0-litre TSI engine that produces 115bhp and 178Nm the Skoda Kylaq can be had in either a 6-speed MT or a 6-speed AT torque converter. The SUV can accelerate from zero to 100kmph in 10.5 seconds and attain a claimed top speed of 188kmph. It is launched at starting price of INR 789,000. The Czech carmaker stated it has expanded its local supplier base by 10 percent that will help bring down the cost of ownership and also enable faster turnaround time.

Piyush Arora, Managing Director and CEO, Skoda Auto Volkswagen India, said, “We’re thrilled to begin production of Skoda Auto India’s first sub-4-meter SUV. Congratulations to the entire team on the successful start of production. Kylaq is engineered and developed in India to cater to the evolving requirements of Indian customers. By manufacturing Kylaq locally, we proudly support the Make-in-India initiative, maintaining Group’s DNA of delivering safety, comfort and driving dynamics.”

Furthermore, Skoda Auto Volkswagen India has increased production at its Chakan facility by 30 percent, which now can produce 255,000 vehicles per year.

Andreas Dick, Member of the Board of Management of Skoda Auto for Production and Logistics, said, “The successful start of production for Skoda Kylaq reflects the incredible teamwork and collaboration between our teams in India and the Czech Republic. Every detail has been meticulously planned and executed, from design to the implementation of advanced manufacturing processes, ensuring we meet the highest standards of quality and efficiency. These efforts have created the ideal prerequisites for Kylaq to become a cornerstone of our success in India, setting new benchmarks in the compact SUV segment and strengthening our commitment to this dynamic market.”

Toyota Kirloskar Motor has unveiled the all-new Camry hybrid electric vehicle, further strengthening its commitment towards realising the company’s carbon neutral goals.

Developed under the concept of ‘Sedan to the Core’, the new Camry hybrid is powered by a 2.5L Dynamic Force Engine and delivers 221 Nm of torque at 3,200 rpm. The sedan comes with electronically controlled continuously variable transmission (e-CVT) and offers multiple driving modes – Sport, Eco and Normal – to accommodate a variety of driving situations and styles. A high-capacity Li-ion battery is another component of Toyota's 5th Generation Hybrid Technology System that boosts output to an amazing 169 kW (230 PS) maximum power. This advanced hybrid system is the ideal option for the luxury sedan enthusiast who cares about the environment since it combines performance with an amazing fuel efficiency of 25.49 km/l.

Among the many active and passive cutting-edge safety features available on the luxury sedan are the best-in-class nine SRS airbags, Electronic Parking Brake with Brake Hold Function, Vehicle Stability Control, Traction Control, Clearance & Back Sonar, Parking Assist with Back Guide Monitor and Tyre Pressure Monitoring System. The hybrid battery in the new Camry is covered for eight years or 160,000 km, whichever comes first.

Masakazu Yoshimura, Chairman, Managing Director and Chief Executive Officer, Toyota Kirloskar Motor, said, “The Launch of All-New Camry Hybrid Electric Vehicle is a testament to our vision of developing ever-better, sustainable mobility options in line with the Toyota’s Global Environmental Challenge 2050. India remains a crucial market, and our product strategy aligns with India’s national priorities to lower the carbon emissions and achieve energy security goals. Towards this, we have embraced the adoption of multiple-pathway approach to drive clean mobility and promote mass electrification with greater agility and speed. The introduction of the All-New Camry Hybrid Electric Vehicle, being a green mobility offering, will continue to further strengthens our contributions toward building a futuristic carbon-free, happy society.”

Tadashi Asazuma, Deputy Managing Director – Sales-Service-Used Car, Toyota Kirloskar Motor & Lexus, said, "The all-new Camry exemplifies our unwavering commitment to crafting vehicles that blend performance, sustainability and cutting-edge innovation. Developed under the concept of ‘Sedan to the Core’, the all-new Camry delivers an unmatched driving experience thanks to its advanced 5th generation hybrid system, offering enhanced performance and exceptional responsiveness. I believe that our new offering will bring the pride of ownership with its sporty design, tech-loaded features and advanced safety systems offering peace of mind to our customers thus reinforcing our vision to offer mobility that is both aspirational and responsible for the Indian market.”

Sabari Manohar, Vice President – Sales-Service-Used Car Business, Toyota Kirloskar Motor, said, “The launch of the All-New Camry Hybrid Electric Vehicle is an exciting milestone for us in India. This new model with its 5th Gen Hybrid Technology, striking design and luxurious specs, is crafted for those who seek contemporary elements – sleek, spacious, safe and seamless driving experience. Equipped with Toyota Safety Sense 3.0 and a suite of connectivity features, it offers our valued customers not just elevated style but also peace of mind, comfort and convenience at every turn. We sincerely thank our customers for their trust in the brand and appreciation for our sustainable mobility offerings that gave us the confidence to introduce this new and advanced model, aimed at fulfilling their eco-friendly vehicle choices.”

The luxury sedan is priced at INR 4.8 million ex-showroom and is available in four stunning new colours – Precious Metal, Dark Blue, Cement Grey and Emotional Red – along with the existing options of Attitude Black and Platinum White Pearl. Bookings for the All-New Camry Hybrid Electric Vehicle are now open.

South Korean passenger vehicle manufacturer Kia has announced that it has delivered 400 units of its all-new Carnival Limousine within two months of delivery commencements in India.

Priced at INR 6.39 million, the new Carnival Limousine was launched on 3 October 2024 in India. Available in a single top loaded variant the Carnival has got over 3,350 bookings and sees a waiting period of six months at present.

Hardeep Singh Brar, Senior Vice-President and Head of Sales and Marketing, Kia India, stated, "We are thrilled to announce that we have achieved the milestone of delivering 400 Kia Carnival Limousines to our esteemed customers within 2 months of delivery commencement. This milestone is a testament to the unwavering trust of our customers in the Kia brand. The Carnival has a rich legacy, and we were confident that its latest iteration, with its unparalleled blend of luxury, advanced technology, and premium features, would resonate with our discerning customers."

The company is also gearing up to expand its product portfolio in the compact SUV segment with the Syros SUV set to be unveiled on 19 December.

Japanese automaker Nissan Motor Co, which has been under pressure on the back of dwindling sales, is set to restructure its leadership team to create a lean, flat structure, which it believes will enable to respond flexibly and quickly to changes in the business environment.

From 1 January 2025, Stephen Ma, currently CFO, will take over the role of Chairperson of Management Committee for China. He will continue to report to Makoto Uchida, CEO, Nissan Motor Co.

Jeremie Papin will succeed Ma, from his current role as the Chairperson of the Management Committee for Americas.

Christian Meunier will join Nissan as chairperson of the Management Committee for Americas. He will report to Guillaume Cartier, chief performance officer (CPO).

Asako Hoshino, who currently serves as Chief Brand & Customer Officer (CBCO) and Chairperson of the Management Committee for Japan/ASEAN, is set to retire from her role overseeing Japan/ASEAN operations.

Shohei Yamazaki will take over as the Chairperson of the Management Committee for Japan/ASEAN from her current role as chairperson of the Management Committee for China.

Makoto Uchida, President and CEO, Nissan, said: “These leadership appointments will bring the necessary experience and urgency to the countermeasures we are taking to get the company back on track. With the support of our leadership team, we will carefully execute our turnaround actions to secure sustainable profits while focusing on future growth."