Festive season sees unusual mix of auto waitlists and discounts
India's passenger vehicle market is seeing a peculiar situation this festive season, with some models having waiting periods of as much as 96 weeks sans any discounts. Meanwhile, others are promising cash discounts as high as ₹4.5 lakh to control inventory pileups. The development highlights an increasing gap between premium and volume players in one of the world's largest auto markets.
Sales growth and market segmentation
Despite a sluggish start to the festive season, most passenger vehicle dealers have recorded a 10% month-on-month sales rise in October. According to data from Jato Dynamics, Toyota Land Cruiser leads the waiting period chart with 96 weeks. Meanwhile, MG is at the forefront of the discount race with up to ₹4.5 lakh off on its Gloster SUV, followed by Mahindra's XUV400 and Hyundai's Kona with ₹3 lakh and ₹2 lakh off, respectively.
Demand for premium vehicles remains strong
Several EVs and premium SUVs from automakers such as BYD and Hyundai still witness waiting periods between four and 32 weeks. "This sustained demand for premium vehicles comes despite minimal discounting, suggesting a resilient luxury segment unfazed by broader market pressures," said Ravi Bhatia, President of Jato Dynamics. The trend points toward a supply-demand mismatch with premium segments, especially SUVs and EVs, facing supply constraints but strong demand.
Mass market segments resort to discounts
Unlike the premium segment, mass market segments are getting more price sensitive. This has prompted dealers to offer heavy discounts to clear their stocks. According to government's Vahan portal, registration of passenger cars - a proxy for retail sales - has surpassed 3.71 lakh units this month. Dealers hope to cross four lakh mark this month, and might extend their month-end incentives by 3-4 days to cash in on Diwali and Dhanteras demand next week.
Festive season expected to boost PV sales
PV sales in India are usually driven by the festive season. "The sales went up in September but then they were offset by the Shraddh period. The festive and marriage season in October and November is expected to see an uptick in demand," a leading Delhi-based car dealer said. Despite flat sales of PVs in the first half of 2024-25, the industry is expecting a rebound in the second half, powered by the festival season.
