India’s automotive industry produced 2.83 million vehicles in October, jumping 35.6% from a year earlier, data from the Society of Indian Automobile Manufacturers (SIAM) showed. SIAM director-general Rajesh Menon said the wholesale number was robust in October as dealerships anticipated a demand pick-up in the upcoming Diwali festival. In contrast, retail vehicle sales fell 24% year-on-year, although they rose by 5% from September.
The Federation of Automobile Dealers Association (FADA) warned automakers and dealers to keep their inventories in check as demand was expected to remain subdued after the festival season. Dealers’ passenger vehicle inventories averaged 35-40 days in October, increasing from 10-12 days in January before the country’s nationwide lockdown. FADA also warned about a potential supply chain disruption stemming from reimposed lockdowns in Europe. The disruption could create a mismatch between supply and demand for passenger vehicle sales, FADA noted.
The auto sector contributes to 12% of India’s steel demand. In September, the industry consumed 5.57 million tons of flat steel, decreasing by 5.4% from August but increasing by 1.6% from a year earlier, official data showed. Demand for hot-rolled coil (HRC) dropped 8% year-on-year in September to 3.17 million tons, the data showed.
