During the holiday season, usually around September-October, passenger car and two-wheeler dealers eagerly await strong bookings to boost retail sales of all models. Post-Covid, over the past few years, holiday sales have had a disappointing response, but this year looks different. “For a long time the automotive industry has missed this opportunity but this year Navratri, Dhanteras and Diwali have been some of the biggest periods for the business. While for 2W we are seeing robust numbers, the next 2-3 months will determine whether we are off the hook or not,” says Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA).
Typically, festive sales account for around 40% of annual car sales. He adds that with this year’s remarkable festive season and a strong booking record, the industry is confident that for PVs (passenger vehicles) it will be the best festive year in a decade.
According to experts, car and bicycle dealers expect growth of up to 40% this month. Festive season sales have already picked up more than 8 lakh in dealer bookings. According to FADA, a growth of more than 57% has been observed during the Navratri season this year. Last month, Hyundai Creta was the best-selling midsize SUV, followed by Kia Seltos with sales of 11,000 units.
“This is the time when customers are in the market looking for major investments and purchases and we are grateful that they have placed their faith in the automotive industry this time. The excitement created in the industry by OEMs through new releases just before the festive season has been ably nurtured by dealer partners, adding to sales momentum and converting dealer visits into end-use purchases,” Singhania said.
He adds that the reduction in semiconductor/chip scarcity has also helped OEMs deliver vehicles to dealerships on time. “Nevertheless, dealers are also eagerly awaiting customer confidence and have started a pre-festive inventory buildup,” he said.
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