Festive season is generally the period when all the automakers try to cash in the market demand which is generally high. However, this year the customer sentiments have not been positive and that has reflected quite significantly in the sales of the 42 days festive period. According to the data published by Federation Of Automobile Dealers Association (FADA), retail sales of passenger vehicles posted a de-growth of 14 per cent selling 287,717 units in the festive period 2018 compared to 333,456 units which were sold in the festival period last year. The sales to two wheelers too witnessed a slump of 13 per cent at 15,83,276 units sold this year in the festive season compared to 18,11,703 units which were sold in last year's festive season.
Various macro and micro economy factors such as rise in the prices of crude oil, rise in fuel retail prices and onetime payment of three years' insurance premium has affected customer sentiments which has led to subdued sales during the festive season this year. Speaking on the sales, F A D A President, Ashish Harsharaj Kale said, "We have not seen such a dull festive season, in the past few years as many negative factors came into play during this season which weakened the consumer sentiment and postponed their purchase decision. It is a matter of deep concern for our dealership community. Higher de-growth was seen in the Navratri and Dussehra festivals. However, with fuel prices starting their downward trend in October end, Diwali season saw a sales uptick. Dealer inventory levels in both these segments are high substantially as a result which is a matter of great concern."
Also Read: Passenger Vehicle Segment Records 1.55 Per Cent Growth In October
Commenting on the subdued demand, Puneet Anand- Sr. GM & Head Marketing, Hyundai India said, "We've outperformed the industry growing at a rate of 5 per cent thanks to our new models like the Hyundai Santro and Elite i20 facelift. However, the demand overall for the industry have been sluggish mainly due to rise in fuel prices and change in policies like onetime payment of insurance premium which have affected the customer sentiments."
Speaking of the weak demand, Veejay Ram Nakra- Sr. Vice President, Sales & Marketing, Mahindra had a similar viewpoint, "The three main reasons of the weak demand are- rise in retail prices of petrol and diesel which has led to a weak demand specially in the tier 2 and rural markets, onetime payment of insurance premium and a weak rupee against dollar which has affected various sectors."
Also Read: Car Sales October 2018: Maruti, Toyota Sales Stay Flat While Ford, Hyundai See Growth
However, speaking on the outlook all the industry veterans hope the demand to improve as the after the fuel prices have been taken care of. India can also now expect certainity to some extent after U.S. has given us waiver to export oil form Iran which is comparatively cheaper.
from NDTV CarAndBike - Latest News https://ift.tt/2FE6KSb
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