Rise in car and home sales promising

The housing and auto industry were among the hardest hit during the pandemic, and it is important these sectors are now registering robust sales.

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Consumer spending on home-buying and passenger cars is on the uptick, the latest segment data seems to indicate. Despite the marginal rise in prices and the firming up of mortgage rates, housing sales in the top seven metros are all set to surpass annual sales of 2.62 lakh units achieved in the pre-pandemic year. Property sale registrations in Mumbai, Pune and the rest of Maharashtra showed that in the first four months of the current fiscal, more than 8 lakh units changed hands. This is still short of the 10 lakh units registered in the first four months of 2019–20, but the upward trend is visible. Passenger car sales in July showed an increase of 16% at 3.42 lakh units compared to just 2.95 lakh cars dispatched to dealerships in July 2021. Even sequentially, July sales this year were higher than June when 3.21 lakh cars were sold.

What is significant is that the luxury market seems to be opening up after the Covid freeze. Property consultant Anarock showed over 25,000 luxury flats priced above Rs 1.5 crore sold in the first six months of this calendar year, surpassing sales in the last three years in this niche segment. Luxury buying is usually not a necessity, and when consumer sentiment rebounds, this segment is the hardest hit. In calendar 2020, luxury apartment sales plummeted to 8,470 units compared to 17,740 units in 2019.

The housing and auto industry were among the hardest hit during the pandemic, and it is important these sectors are now registering robust sales. Home-buying and car sales are bell weather indices for consumer sentiment, and market watchers are hoping the post-pandemic turnaround will also continue into the festival season. Soaring demand over Dussehra and Diwali driven by family buying will provide much-needed economic impetus. The only concern is some businesses often kill the proverbial Golden Goose by being greedy and hiking prices. Government and industry associations should hold the price line earnestly and ensure the consumer returns to the marketplace.