NEW DELHI: The festive length this time has became out to be one of the vital slowest for automobile and two-wheeler companies in many years as demand used to be dull and consumers made up our minds to keep away from new purchases.
The slowdown came whilst companies, saddled with heavy inventories, gave horny reductions, freebies and other offers to trap consumers. The sentiment of consumers used to be hit due to a number of components, basically spike in gas costs and higher value of insurance and automobile financing rates.
According to the ‘festive length’ data sourced from the Federation of Automobile Dealers Associations (FADA), automobile and SUV sales have been down 14% to two.nine lakh units in opposition to 3.3 lakh units during the auspicious length closing year. For two-wheelers, the decline has been 13% on sales of 15.8 lakh units in opposition to 18.1 lakh units closing year.
For its calculation, FADA has counted the festive length of every year from the first day of Navratra and running up to 15 days post-Dhanteras. This is probably the most auspicious length in the Hindu calendar and culminates round Diwali, and witnesses the very best demand once a year.
“It used to be a painful festive length this year,” Ashish Harsharaj Kale, president of FADA, instructed TOI. “We have not seen this sort of poor festive length over the last many years, and the situation is hurting.”
Apart from hike in gas and insurance costs, a number of “other negatives” have also been pulling demand down, said trade officers. “With this being the election season, there's numerous negativity in the air as political parties industry fees on every other, including those in the case of corruption. This creates uncertainty and concern in mind of consumers, a lot of whom want to wait and watch till election effects. They want to preserve money and not exchange vehicles, or improve,” a senior reputable with one of the vital main automobile companies said.
Even Dhanteras, when numerous folks wish to take new deliveries, used to be dull. This used to be despite new launches, including Marazzo MPV by way of Mahindra & Mahindra and Santro by way of Hyundai.
“For past few months, the automobile trade has been witnessing subdued retail sales for passenger automobiles on account of low consumer sentiment. One has to stay wary,” Rajan Wadhera, president of Mahindra’s automobile sector, said.
Analysts said the situation is not going to show round any time soon. Ravi G Bhatia, India president for world automobile data and consultancy firm JATO, said the going will continue to be difficult. “Retail is truly suppressed. There had been no mood boosters — gas costs continue to stay top, and insurance top class problems have not been addressed. People are now looking to defer purchases.”
Maruti Suzuki has said that with the exception of upper gas and insurance costs, other components that are flattening demand are growing affect of shared mobility (Ola and Uber) and rising congestion in cities. This, it said, has been putting shoppers off new purchases in metros and bigger cities.
“If a buyer comes to a decision not to buy, we will be able to’t do anything else in that state of affairs,” R S Kalsi, senior director (sales & marketing) at Maruti Suzuki, said. He said sales in larger cities have managed to grow most effective by way of 2-3% this year, even if rural demand has been higher. “Metro markets are under drive in the case of growth. There are issues.”
The slowdown came whilst companies, saddled with heavy inventories, gave horny reductions, freebies and other offers to trap consumers. The sentiment of consumers used to be hit due to a number of components, basically spike in gas costs and higher value of insurance and automobile financing rates.
According to the ‘festive length’ data sourced from the Federation of Automobile Dealers Associations (FADA), automobile and SUV sales have been down 14% to two.nine lakh units in opposition to 3.3 lakh units during the auspicious length closing year. For two-wheelers, the decline has been 13% on sales of 15.8 lakh units in opposition to 18.1 lakh units closing year.
For its calculation, FADA has counted the festive length of every year from the first day of Navratra and running up to 15 days post-Dhanteras. This is probably the most auspicious length in the Hindu calendar and culminates round Diwali, and witnesses the very best demand once a year.
“It used to be a painful festive length this year,” Ashish Harsharaj Kale, president of FADA, instructed TOI. “We have not seen this sort of poor festive length over the last many years, and the situation is hurting.”
Apart from hike in gas and insurance costs, a number of “other negatives” have also been pulling demand down, said trade officers. “With this being the election season, there's numerous negativity in the air as political parties industry fees on every other, including those in the case of corruption. This creates uncertainty and concern in mind of consumers, a lot of whom want to wait and watch till election effects. They want to preserve money and not exchange vehicles, or improve,” a senior reputable with one of the vital main automobile companies said.
Even Dhanteras, when numerous folks wish to take new deliveries, used to be dull. This used to be despite new launches, including Marazzo MPV by way of Mahindra & Mahindra and Santro by way of Hyundai.
“For past few months, the automobile trade has been witnessing subdued retail sales for passenger automobiles on account of low consumer sentiment. One has to stay wary,” Rajan Wadhera, president of Mahindra’s automobile sector, said.
Analysts said the situation is not going to show round any time soon. Ravi G Bhatia, India president for world automobile data and consultancy firm JATO, said the going will continue to be difficult. “Retail is truly suppressed. There had been no mood boosters — gas costs continue to stay top, and insurance top class problems have not been addressed. People are now looking to defer purchases.”
Maruti Suzuki has said that with the exception of upper gas and insurance costs, other components that are flattening demand are growing affect of shared mobility (Ola and Uber) and rising congestion in cities. This, it said, has been putting shoppers off new purchases in metros and bigger cities.
“If a buyer comes to a decision not to buy, we will be able to’t do anything else in that state of affairs,” R S Kalsi, senior director (sales & marketing) at Maruti Suzuki, said. He said sales in larger cities have managed to grow most effective by way of 2-3% this year, even if rural demand has been higher. “Metro markets are under drive in the case of growth. There are issues.”
Car, SUV sales skid this festive season
![Car, SUV sales skid this festive season]()
Reviewed by Kailash
on
November 24, 2018
Rating:
