Auto Retail sales rise 26% on festive push

The combined power of Navratri, Dussehra, Dhanteras and Diwali fired up car sales in Oct as retail numbers shot up by 26%, a booster at a time when demand scenario is tough, despite companies doling out hefty discounts.

Total retail sales in the month are estimated at between 4.8 lakh and 4.9 lakh units (against 3.9 lakh units last Oct), with almost all top companies like Maruti, Hyundai, Tata Motors, JSW MG and Mahindra & Mahindra reporting strong consumer purchases. Many witnessed their highest-ever Oct numbers.

The growth in Apr-Oct, however, is estimated at a modest 5%, weighed down by the slow retail offtake in first two quarters.

The slowdown has, however, seen companies cut down on wholesales as many - particularly Maruti - claim to be "recalibrating" their dealer dispatches to pare down inventory levels.

The industry believes that reduction in inventory after festive buying will help it cut down consumer discounts.

Maruti's retail sales in Oct crossed the 2 lakh-mark (up 25% over 1.6 lakh units), which is its highest-ever for the month, Partho Banerjee, senior executive officer for sales and marketing.