With a record number of new launches, and discounts with freebies, Indian automobile makers are hoping to drive growth this festive season.
“This year, we are entering this period with considerable momentum, having achieved the highest total sales in Q1. These were the highest in both Maruti Suzuki’s history and, coincidentally, in the Indian automotive industry. We feel optimistic about the upcoming festive season, especially with the ongoing support from the government’s policies and the positive macro indicators. However, given the high base from last year’s sales, we expect moderate growth this festive season,” said Partho Banerjee, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India Ltd.
Expecting an uptick in demand automobile and two-wheeler makers launched new models between June and August. The recently launched models include Tata Curvv, Mahindra Thar Roxx, Citroen Basalt, BSA, Jawa Yezdi and Nisan X-Trial. Luxury automakers also launched vehicles including Mercedes-AMG GLC 43 4MATIC Coupé, Mercedes-Benz CLE 300 4MATIC Cabriolet and Lamborghini Urus SE.
“The retail should be similar or marginally better than last year on account of significant discounts, new model launches and inventory build-up situation that we have seen at the dealer end. Offtake would continue to be under pressure. We expect the offtake to grow marginally by a lower single digit for the year FY25 considering the pressure on retail and the current inventory situation,” said Hemal Thakkar, Senior Practice Leader & Director – Consulting, CRISIL Market Intelligence and Analytics.
“Our recent product launches, including the 4th generation Epic New Swift and our exclusive Dream Series editions for popular hatchback models such as the Celerio, Alto K-10 and S-Presso, along with the distinctive Ignis Radiance variant as well as Black Edition range of cars resonate well with our target audience. These strategic introductions cater to diverse customer preferences,” added Partho Banerjee.
Festive inventory
Automakers are also expecting the inventory build-up to decrease at the dealer’s end during the festive season.
“The festive season will release the inventory. We foresee a good demand with inquiry levels remaining stable. There are no alarming early warning signals. With good monsoon and growth in the rural economy, inflation in control the demand should be strong,” said Shailesh Chandra, MD of Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility.
Rural festive sales
With good monsoon, the rural growth during the festive season is expected to gain momentum.
“Rural has bounced back for two-wheeler segment and FMCG. With normal rains till the end of July, the rural sentiments are good and with a normal rainfall prediction should continue to be good for the remainder of the year too. However rural, contributes a little more than a third of PV sales so it would help in holding the market momentum,” added Hemal Thakkar.