Automobile sales may increase by as much as 25% in June

23 Jun 2022 , 11:39 AM

According to media reports, insiders in the industry predict that between 321,000 and 325,000 passenger vehicles will be delivered from manufacturing plants to dealerships in June, up roughly 25% from the 255,743 units that were sold during the same time last year.

As consumer demand remains robust and the components shortage that had hampered production for the majority of the previous year eases, passenger vehicle manufacturers in the local market are expected to announce one of their highest-ever monthly sales in June.

If market leader Maruti Suzuki hadn’t scheduled a week-long maintenance stoppage, volumes would have undoubtedly exceeded previous records. Sales of passenger cars, sedans, and utility vehicles reached record highs of 334,311 units in October 2020 and 321,794 units in March 2022, respectively.

In March 2022, Kia India recorded its highest-ever sales of 22,622 units.

Waiting times for popular models could continue to be quite long, though, with inventories in the channel hovering around half of the average levels (14—15 days). Best-sellers, particularly SUVs, have a considerable wait time, according to Ravi Bhatia, president of the consulting firm JATO Dynamics.

While the waiting period for the Hyundai Venue is up to 16 weeks, it is 34—36 weeks for the Maruti Suzuki Ertiga, 24—36 weeks for the Mahindra Thar, 28—34 weeks for the Hyundai Creta, and 18—24 months for the Mahindra XUV700.

The future growth prospects of the automobile sector look bright in the medium to long term. Though recession worries after the fed chairman’s comments do dampen the market sentiment.