Festive weekend drives up sales of cars, two-wheelers | Mint

Festive weekend drives up sales of cars, two-wheelers

Maruti Suzuki expects industry-wide deliveries of passenger vehicles during the Dhanteras to Bhai Dooj period to touch 55,000-57,000 units, up 18-21% from a year ago.
Maruti Suzuki expects industry-wide deliveries of passenger vehicles during the Dhanteras to Bhai Dooj period to touch 55,000-57,000 units, up 18-21% from a year ago.

Summary

  • Dhanteras-Bhai Dooj period could see PV sales surge up to 21% as availability rises

New Delhi: ales of passenger vehicles (PVs) and two-wheelers surged over Dhanteras and Diwali, lifted by festive spirits and better availability of products compared with last year.

Many Indians prefer taking deliveries of new vehicles and purchasing big-ticket items like homes and household electronics during the festive period, especially in the Navratri week and on the days of Dhanteras, Diwali and Bhai Dooj, particularly in the northern and central parts of the country.

Maruti Suzuki expects industry-wide deliveries of passenger vehicles during the Dhanteras to Bhai Dooj period (10-15 November) to touch 55,000-57,000 units, up 18-21% from a year ago, said executive director Shashank Srivastava.

“However, we should wait until Bhai Dooj to get a clearer picture with actual retail figures as some deliveries also take place on that day. For Maruti Suzuki, we delivered close to 21,000 units on Dhanteras and are estimating deliveries of around 27,000 units for the Dhanteras-Bhai Dooj period," Srivastava added.

An estimated 41,000 passenger vehicles were delivered on Dhanteras, compared with 32,000 last year, a growth of 38%. For carmakers, the season marks a record in sales volumes, continuing with the momentum seen through the initial phase of the season, and even the entire year. Every month in 2023 saw production rise to a record, as the semiconductor chip shortage that had marred production last year eased.

“Hyundai Motor India marked the auspicious day of Dhanteras by delivering an unprecedented 10,293 units, surpassing last year’s figure by more than double. It reflects a clear preference for Hyundai vehicles, especially post the announcement of six airbags as a standard safety feature across all our models and variants," said Tarun Garg, chief operating officer, Hyundai Motor India.

Luxury carmakers too saw record deliveries during Dhanteras and Diwali, even as they grappled with global supply chain disruptions which constrained product availability in the country. “We have seen record deliveries during this year’s Dhanteras and Diwali, underlining a strong customer sentiment. However, supply chain-related disruptions continue to affect production of SUVs, especially the GLC. We expect these disruptions to continue in the coming months as well," Santosh Iyer, MD and CEO, Mercedes-Benz India, said.

With inventory levels rising to 60 days, Federation Of Automobile Dealers Associations (Fada) had said that November sales would serve as a critical gauge for carmakers to assess demand and shape their future production plans.

Vehicle registrations during Navratri, encompassing all automobile segments, soared a record 18%, crossing the highs previously recorded in 2017. However, the impact of local elections and market saturation meant that the festive spirit didn’t translate uniformly into sales across all regions, Fada said.

Passenger vehicle registrations spiked 6.5% in the 10-day Navratri period (15-24 October) year-on-year to 140,000 units, data released by Fada showed.

Meanwhile, two-wheelers saw strong double-digit growth in retail sales, with most dealers Mint spoke to across Pune, Rajasthan and New Delhi, indicating a 20% and above increase in sales during Dhanteras and Navratri compared with the year before.

“Demand was very healthy for us, especially in the 125cc and above scooter and motorcycle segments. We’ve seen a 20% growth over last year," a Pune-based dealer for TVS Motor Co. said.

“We’ve seen a 37% surge in our sales during the Navratri to Bhai Dooj period," Nikunj Sanghi, owner of JS 4Wheels, a Rajasthan-based Hero MotoCorp dealership group said, adding, “Hero MotoCorp also commands a 70% share of the market in this region so our sales were strong. We expect further momentum to come from demand during the wedding season, including the auspicious day of Akha Teej which falls on 23 November," Sanghi said.

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