Cars worth Rs. 1.1 lakh crore sold this festive season
What's the story
During the 90-day festive season in India, an unprecedented 1.03 million cars were sold, generating over Rs. 1.1 lakh crore in revenue.
The celebrations kicked off with Onam in Kerala in August and wrapped up with Bhai Dooj in most states. In recent years, the Indian market has experienced consistent growth, with monthly sales reaching new heights.
Average prices have also risen due to a maturing market, increased disposable income, and a younger demographic.
Growth
Over 25% growth in sales compared to last year
From August 17 through the end of Navratri, the industry saw an impressive growth of over 18%, retailing more than seven lakh units.
It is estimated that an additional 3.25 lakh to 3.3 lakh units were sold between Dussehra and the end of the festive season, pushing the total festive sales past one million units for the first time.
This represents a significant increase of over 20% to 25% compared to last year's festive sales.
Sufficient stock
Adequate stock at dealerships in India boosts sales
Shashank Srivastava, Senior Executive Officer of Sales and Marketing at Maruti Suzuki, credited the record-breaking sales to an extended festive period, the availability of semiconductor chips, and a robust production ramp-up.
Tarun Garg, COO of Hyundai, noted that sufficient inventory at its dealerships across India allowed value seekers and impulsive buyers to make on-the-spot purchases during the festivities.
Rural markets
Rural markets contribute to festive cheer
Maruti Suzuki experienced higher growth in rural areas (11%) compared to urban regions (9%), with rural sales making up 44% of its total sales.
For the overall market, small towns and villages are nearing a one-third share, contributing 31% of total sales in 2023.
This expansion occurred despite a sluggish entry-level car segment, which has been affected by price hikes in recent years.
Facts
Automotive industry poised for around 9% growth in 2023
Industry experts anticipate that the robust festive season will propel the passenger vehicle market to grow by nearly 9% to 4.13 million for the 2023 calendar year, around one lakh units more than initially projected.
Hardeep Singh Brar, National Head of Sales and Marketing at Kia India, expects the industry to conclude the year with at least 8% growth.
Garg foresees a continued expansion in low single digits for the upcoming year.