My India First

My India First

Auto cos cruise to their best-ever festive season this yr

New Delhi: Automakers in India recorded their best-ever festive season this yr, with passenger automobile (PV) gross sales rising by 41% year-on-year within the three months between the festivals of Onam and Bhai Dooj.

As per preliminary business estimates, as many as 1.138 million passenger automobiles together with vehicles, sedans and utility automobiles have been bought within the native market between August 17 and November 14.

The earlier peak in gross sales was within the corresponding competition months of 2020, when customers had purchased some 934,000 automobiles. Demand on the time, nonetheless, was skewed resulting from lack of gross sales through the nationwide lockdown on the onset of the pandemic.

This yr, demand elevated throughout classes, together with the entry-level, increasing the share of small vehicles within the total market to 30% (from 27% seen to this point this fiscal). The share of sports activities utility automobiles (SUVs) in total automobiles retailed within the native market through the season stood at 48-49%.

“The festive season has been good this yr,” Shashank Srivastava, senior government officer (advertising and marketing and gross sales) at Maruti Suzuki advised ET.

Companies

Maruti Suzuki, the nation’s largest carmaker, bought 490,000 models, rising its market share to about 43% through the interval from somewhat greater than 42% to this point this fiscal.

Business insiders mentioned that though the festive season this yr was longer–spread over 90 days in contrast with 71 days in 2022-sales development was sturdy (about 15%) even when the extra 18 days have been to be excluded.

Onam marks the beginning of India’s foremost competition season which reaches a excessive close to to Diwali. The festive season accounts for 30-35% of retail gross sales for carmakers.

Tarun Garg, chief working officer (COO) at Korean auto main Hyundai, mentioned that though pent-up demand available in the market fizzled out with an enchancment in provides starting final quarter, bookings remained wholesome, supporting retail gross sales within the festive interval.

“The festive interval ranging from Onam in Kerala to Bhai Dooj at this time has seen a terrific response from prospects for Hyundai automobiles. We’ve retailed 165,000 automobiles from August 17 (Chingam) until Bhai Dooj. This can be a development of 9% over the identical interval final yr”, Garg mentioned. “Our SUVs comprising Creta, Venue and the newly launched Hyundai EXTER have particularly seen a serious traction. SUVs contributed to round 65% of those 165,000 automobiles retailed by us.”

Within the two-wheeler phase, consolidated gross sales of bikes and scooters for the festive interval is but to be compiled, however Manish Raj Singhania, president of Federation of Vehicle Sellers Affiliation (FADA), mentioned demand was significantly good in the previous few weeks, albeit on a decrease base when put next with passenger vehicles. “This time, sellers have had good ranges of inventory. On the retail degree, shopper demand has been robust,” Singhania mentioned. “Gross sales appear to have grown in double digits. Two-wheelers significantly have executed nicely, albeit the bottom is decrease when put next with passenger vehicles.”

Saket Mehra, accomplice, Grant Thornton Bharat, mentioned two-wheeler gross sales in October, in reality, reached 1.89 million models, approaching the pre-pandemic ranges in contrast with October 2022, when 1.58 million models have been bought within the native market.

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