This year's festive season is expected to see passenger vehicle sales surpass 10 lakh

14 Aug 2023 , 02:03 AM

This year, domestic passenger vehicle sales are anticipated to surpass the 10 lakh mark during the holiday season, with demand, particularly for utility vehicles, staying strong. This year, the 68-day holiday period spans from August 17 to November 14. Few days in between are not seen as fortunate for purchasing.

Shashank Srivastava, Senior Executive Officer (Marketing and Sales) at Maruti Suzuki India, stated to ET that typically, the holiday season sales make up between 22 and 26% of the total sales for the year.

‘With the overall passenger vehicle sales anticipated to be in the range of 40 lakh units this fiscal, the festive season is expected to witness sales of around 1 million units,’ he said.

According to Srivastava, the industry has experienced good sales this year and is anticipated to do so again in the upcoming months.

‘In terms of sales this fiscal year, April, May, June, and July were the best ever. With almost 3.52 lakh units sold, July had the second-highest sales ever for a single month. According to Srivastava, August is also anticipated to be in the neighbourhood of 3.5 lakh units.

The only two things that need to be closely monitored are how the monsoon behaves between August and September and the demand metrics, which are still strong, he said.

Concerns about the high incidence of auto loans are also raised because about 83% of consumers use them to purchase cars.

When asked about Maruti Suzuki India’s sales forecasts, Srivastava responded that the company likewise receives between 22 and 25% of its total yearly sales during the holiday season.

The largest automaker in the nation today holds a market share of about 43% in the total passenger vehicle market. Similar comments were expressed by Shailesh Chandra, managing director of Tata Motors Passenger Vehicles, who stated that the industry anticipates a tremendously successful holiday season this year.

‘We all anticipate that the holiday season will be quite successful; demand has been very robust and is at a level that will be sustained for several quarters. Therefore, we feel rather sure about the time frame,’ he said.

Automobile dealers’ group FADA has observed that as the holiday season approaches, there is optimism about a boost in retail sales. In anticipation of the approaching festival season, it stated that the inventory level in the PV segment has exceeded the 50-day threshold.

The organization for car dealers, FADA, has observed that as the holiday shopping season approaches, there is optimism about a surge in retail sales. In anticipation of the approaching festival season, it stated that the inventory level in the PV segment has exceeded the 50-day threshold.

The IMD’s forecast for below-average rainfall in August, which could result in reduced crop yields, is of more worry, according to FADA, who also underlined that the slowdown in entry-level cars is still there.

It warned that this might have an effect on purchasing power, particularly in rural areas. Over 15,000 auto dealers are represented nationwide by FADA.

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