September Auto Sales Decline in India and U.S.

In September, major Indian automakers like Maruti Suzuki, Hyundai, and Tata Motors saw a decline in wholesales as they reduced dispatches to manage high inventory levels, while companies such as Mahindra, Toyota, and Kia increased their volumes ahead of the festive season. Maruti Suzuki's sales dipped 4% to 144,962 units, with compact car sales particularly affected, while utility vehicle sales rose slightly. Conversely, Mahindra's SUV sales climbed 24%, buoyed by positive rural sentiments from above-average monsoon rainfall. In the U.S., new car sales for September 2024 are projected to drop 13.2% year-on-year, largely due to fewer selling days caused by the timing of Labor Day, but when adjusted for these days, the decline is only 1.8%. Analysts anticipate that the upcoming festive season in both markets will lead to increased discounts and promotional activity, particularly in the two-wheeler segment, which is expected to see significant growth due to better rural demand. Overall, while some manufacturers are struggling, others are poised for potential gains as consumer demand shifts.