He was replying to a query whether October sales were an indication of revival of the industry which has been grappling with demand slowdown for almost a year now.
"We are optimistic a little bit because the stock levels are manageable as the dealers money is freed up due to good retail. We need to look at the situation for couple of months before we conclude the real direction of the industry," Srivastava said.
The company's inventory level is now down to 30 days which is a positive factor, he added.
MSI made most of the festive season and posted a growth of 4.5 per cent in its domestic wholesales at 1,44,277 units in October as against 1,38,100 units in the same period last year.
Other carmakers like Hyundai, Mahindra & Mahindra and Toyota also managed to perform better over last month.
Tata Motors and Honda Cars India also improved sales in October from preceding months. Passenger vehicle wholesales in India declined for the eleventh consecutive month in September.
The slump in sales has forced various companies to cut production and manpower. Elaborating on the factors impacting sales, Srivastava said high acquisition cost remained a challenge.
"Cost of cars going up due to mandatory emission and safety norms, increase in road tax of up to 7 per cent across nine states and upfront payment of three years third party insurance have all increased the on-road price of a car," he noted.
Besides, liquidity crunch has made it difficult for the dealers and customers to get financing for inventory as well as purchase, he added.
Further, confusion in the mind of the customers regarding the transition of vehicles from BS-IV to BS-VI technology, availability of BS-VI fuel and lack of clarity whether a BS-VI compliant vehicle can run on BS-IV fuel have also impacted sales, Srivastava said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.