In a month when most car makers took a hit on account of the government's demonetisation move, Maruti Suzuki reported a robust jump in wholesale volumes to corner 52% of the Indian passenger vehicle market. The company's market share had stood at 46.7% in the year-ago period and at 44% in October 2016.
In November, Maruti Suzuki grew passenger vehicle sales by 14.1% to 1,26,220 units. Challenges in cash availability affected consumer sentiment across manufacturers with passenger vehicle sales inching up by around 2.6% to 2,42,700 units in November.The numbers are wholesale dispatches made to dealerships and do not reflect demand at the retail level.
Industry insiders said barring some major manufacturers who have order backlog on new products, for most companies, retail sales have dropped by 30-50%.
Fresh purchase decisions are also being postponed as disruption in the status quo has affected consumer sentiments. Car makers across the industry are doling out promotional offers and building awareness around use of digital wallets, cheques, credit and debit cards to facilitate cashless transactions.
Maruti Suzuki has maintained it is not expecting any long-term dent on sales because of demonetisation and the resultant cash crunch, as 85-90% of the purchases are funded by loans.
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