Festive Season Sales Expected to Soar, Crossing 1 Million Vehicles Mark
Maruti Suzuki, India’s largest car manufacturer, is anticipating a record-breaking performance during the upcoming festive season. According to senior executive officer Shashank Srivastava, the company expects sales to surpass one million vehicles, marking the first time this milestone will be achieved.
The festive season, which runs from August 17 to November 14 this year, spans a significant 83-day period. Srivastava stated that on average, the festive period contributes around 23-26 percent of a company’s annual sales. However, in the exceptional year of 2020-2021, it accounted for a remarkable 32 percent of the total annual sales.
This year, the industry is projected to sell around 40-41 lakh passenger vehicles, leading to Maruti Suzuki’s estimated sales of one million vehicles. This optimistic outlook is supported by a favorable start to the season, with a 24 percent year-on-year increase in Onam sales.
Despite the positive forecast, Srivastava also highlighted two factors that could potentially hinder growth. Firstly, any increase in interest rates, which may occur due to high food inflation, could pose a challenge. Secondly, the current rainfall deficit of 8 percent could adversely affect rural sentiment. However, Srivastava emphasized that consumer sentiments currently appear to be robust.
Hyundai Motor India’s Chief Operating Officer, Tarun Garg, echoed Srivastava’s optimism. Garg stated that the industry is anticipating a growth of approximately 9 percent during the festive season, building upon a strong performance from the previous year. With a healthy inventory of 20-25 days compared to last year’s 10-12 days, which was impacted by semiconductor shortages, Hyundai is well-positioned to cater to customer demand.
According to Manish Raj Singhania, President at the Federation of Automobile Dealers Associations (FADA), dealers are highly optimistic about sales of passenger vehicles this festive season. With improved supply and an inventory of up to 60 days, dealers anticipate successfully meeting customer demand.
Singhania noted a spike in rural sales during auspicious days last year and expects this trend to continue. However, he emphasized the potential impact of a deficit in monsoon rainfall on the rural market. On the other hand, urban markets are showing strong growth.
Regarding customer preferences, Garg highlighted that Indian customers now prioritize factors like safety, features, design, and connectivity over price. As aspirations drive sales, discounts may have a lesser impact on customer decisions. Garg emphasized the importance of adapting to the evolving needs and desires of customers in the new India.
In conclusion, the festive season in India is expected to witness record-breaking sales, with Maruti Suzuki and other industry players projecting strong performances. Despite potential challenges related to interest rates and rainfall deficits, the overall sentiment is positive, and automobile manufacturers are ready to cater to the demands of a fresh customer base.
