Auto sector: A vroom story with room for more

livemint.com:

November’s auto sales figures are splendid. Over 2.85 million vehicles were sold last month, according to data released on Wednesday by the Federation of Automobile Dealers Associations.

This is the highest monthly figure on record, roundly beating the previous high of 2.57 million units in March 2020, a point when a transition from Bharat Stage 4 emission norms to Stage 6 rules had led many customers to advance their purchases to beat anticipated price hikes. A big boost came from festive-season demand, as Dhanteras and Diwali were celebrated during the month.

But overall demand also appears to have recovered from its pandemic slump. It wasn’t just personal four-wheelers, with 360,000 units sold, that touched a new high, but also two-wheelers, selling almost 2.25 million.

The offtake of more expensive products, by and large, had recovered faster from the pandemic. A broader pick-up is, therefore, especially welcome.

Sales could yet decline a bit from this level as the calendar year draws to an end, although looming price hikes by some manufacturers might spur price-sensitive purchases. In all, it’s a vroom story with room for more.