Big setback for Maruti Suzuki, Hyundai, Tata Motors, Mahindra; this is what they are staring at now
For automakers, Maruti Suzuki, Hyundai, Tata Motors, Mahindra, Honda, Toyota, Ford and more, festive season has brought hardly any joy and even facelifts provided little lift to sales. This has forced CRISIL Research to trim passenger vehicle sales forecast by as much as 200 bps.
Dusshera and Diwali haven’t exactly sparkled for automobile makers or original equipment manufacturers (OEMs). Typically, this period – September and October/November – contribute a fifth of annual sales. (Image source: Reuters)
While sales increased only 1.6% in October, for September and October combined, they de-grew ~2%. Consequently, fiscal-to-date (April-October) growth is just 6%, which is a major worry for OEMs. (Image source: Reuters)
The waiting time for popular models has come down to just a couple of weeks, while face-lifts are outnumbering new model launches. (Image source: Reuters)
Dealer inventory post Diwali stands at ~40 days unlike ~30-35 days in the festival seasons of the past couple of years. (Image source: Reuters)
Consequently, we are trimming 200 basis points (bps) from our earlier growth forecast of 9-11% for the passenger vehicles industry to 7-9%. (Image source: Reuters)