'This will be the best festive season for passenger cars sales in a decade’

During the festive season—typically around September-October—passenger cars and two-wheeler dealers look forward to robust bookings to bump up retail sales across models. Post-Covid, in the last few years, the festive season sales have seen an underwhelming response but this year seems different. “For a long time, the automotive industry has missed on this opportunity, but this year, Navratri, Dhanteras, and Diwali have been among the greatest periods for the business. While for 2W, we are seeing robust numbers, the next 2-3 months will define if we are out of the woods or not,” says Manish Raj Singhania, President, FADA (Federation of Automobile Dealers Associations).

Typically, festive sales make up around 40 per cent of the annual automotive sales. He adds that with this year’s remarkable festive season and a robust booking log, the industry is confident that for PV (passenger vehicles), this will be the best festive year in a decade.

According to experts, car and bike dealers are expecting up to 40 per cent growth this month. The festive season sales have already fetched more than 8 lakh bookings for the dealers. According to FADA, a growth of over 57 per cent was seen during the Navratri season this year. Last month, Hyundai Creta was the highest-selling mid-size SUV, followed by the Kia Seltos with sales of 11,000 units.

“This is the period when customers are out in the market seeking for investments and large ticket purchases and we are thankful that they have demonstrated faith in the automobile industry this time. The enthusiasm created in the industry by OEMs through new releases just before the festive season has been skillfully maintained by dealer partners, adding to the sales momentum and converting dealership footfalls into final purchases,” Singhania said.

He adds that the reduction in semiconductor/chip scarcity also aided OEMs in delivering vehicles to dealers on time. “Nonetheless, dealers also look forward to customer confidence and began a pre-festive inventory buildup,” he said.

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