Discount offers and onset of the festive season failed to lift the ongoing slump in the auto industry as sales figures reported by major automakers for September remained in the negative zone. It is expected that passenger vehicle (PV) sales volume declined by 27 per cent year-on-year (y-o-y), while commercial vehicle (CV) sales volume and two-wheeler volumes fell 46 per cent and 21 per cent, respectively in September y-o-y basis.
Automakers, especially PV manufacturers have now pinned hopes on Diwali and Dhanteras falling in the month of October when buying vehicles is considered to be auspicious.
“Towards the end of the month, there was an encouraging response in terms of customer footfalls. The customers have responded well to our festive offers as reflected in 11 per cent more retail in September 2019 compared to August. We are hopeful that the upcoming festival season will bring positive momentum in the market and we are prepared to embrace it,” said Mayank Pareek, president, PV business unit, Tata Motors.
The company’s PV sales saw a decline of 56 per cent to 8,097 units last month against 18,429 units in September 2018. Similarly, Mahindra and Mahindra, which reported 33 per cent decline in September sales to 14,333 units also expecting the sales figure might improve in October.
“We are positive that this festive season, with the onset of Navratra, will augur well for us and the automotive industry. This, in addition to factors such as the good monsoon and recently announced positive government initiatives should help revive the industry in short term,” said Veejay Ram Nakra, chief, sales, marketing, automotive division, M&M.
Meanwhile, to boost sales, OEMs and dealer showrooms are giving benefits too. While Japanese automaker Honda has announced discounts upto Rs 4 lakh as a part of ‘The Great Honda Fest’, Maruti Suzuki is offering discounts ranging from Rs 40,000 to Rs 100,000 to stimulate retail demand.
According to experts, a marginal pickup in sales is expected amid good monsoon, but they aren’t confident of a major turnaround. “Overall PV volume would improve during the festive season with recovery in rural economy post good monsoon. However, few regions impacted by flood will restrict the sales volume. It would take some time to recover fully,” said Mitul Shah, VP research, Reliance Securities.
PV sales continue falling
Tata Motors’s PV sales saw a decline of 56 per cent to 8,097 units last month against 18,429 units in September last year, while Mahindra and Mahindra reported a 33 per cent decline in September sales to 14,333 units.
OEMs announce offers
OEMs and dealer showrooms have announced offers too. While Honda has announced discounts upto Rs 4 lakh as a part of ‘The Great Honda Fest’, Maruti Suzuki India is offering discounts ranging from Rs 40k to Rs 100k on cars.