02 Dec 2020
Posted in Automotive
November vehicle sales in India maintain positive trend riding on healthy festive demand, says GlobalData
Following the news that automaker Maruti Suzuki reported 1.7% year-on-year (yoy) growth in November 2020 vehicle sales;
Bakar Sadik Agwan, Senior Automotive Consulting Analyst at GlobalData, a leading data and analytics company, offers his view:
“India’s auto OEMs are on the path of recovery to the pre-COVID-19 levels as they have been witnessing positive growth in volume sales on yoy and month-on-month basis starting from August 2020, following the easing of the nationwide lockdown restrictions. November, which was the highly awaited festive season, turned out to be a boon to majority of the OEMs with substantial new sales and the existing pent-up demand.
“Maruti Suzuki reported 1.7% yoy growth in volume in November 2020, according to news release, due to higher sales of vans and utility vehicles. On the contrary, its key segments i.e., mini and compact witnessed decline in sales. Toyota reported 2.4% yoy growth owing to the recently launched facelift Innova Crysta – flagbearer of Toyota in India. The company launched the rebadged version of the Maruti Suzuki Vitara Brezza —Toyota Urban Cruiser—in September this year. Kia witnessed 50% yoy growth backed by robust demand of its recently launched Sonet. SUV giant Mahindra & Mahindra also managed to report 4% yoy growth with increasing demand for its new Mahindra Thar.
“The upward sales trend can be primarily attributed to the several attractive promotions and offers introduced by the OEMs during the festive season. In addition, the existing pent-up demand and continued healthy demand of the recently launched models including Thar, Creta, Innova Crysta and Kia Sonet contributed to the new vehicle sales. Furthermore, the need for affordable personal mobility, new vehicle launches, attractive finance interest rates and offers towards the year end will continue to boost vehicle sales in December as well.”