India is currently experiencing a four-month long holiday season that started in September with Onam and Ganesh Chaturthi. In the states of Kerala and Maharashtra, the auto sector saw record-high sales over this period. At the start of the holiday season, businesses like Maruti Suzuki witnessed a 25% increase and Hyundai saw a 10% gain. Navratri and Diwali are now anticipated by the entire sector.
“As a dealer community, we are quite optimistic about the upcoming festival season,” said Manish Raj Singhania, president of FADA, to CNBC TV18. Sales of passenger cars hit a record high in September. In the vehicle retail sector, a new record is set each month. Consumers spend all their savings throughout the holiday season to purchase big-ticket items during the lucky time. Everything appears to be in order for the holiday season.
Here is a look at some of the key trends driving the growth of the Indian automotive sector:
- Rising disposable incomes: The disposable incomes of Indian consumers have been rising steadily in recent years. This is due to numerous factors, including economic growth, urbanization, and rising wages. As a result, more people are able to afford their own vehicles.
- Increasing demand for personal mobility: The demand for personal mobility is on the rise in India. This is due to several factors, including the increasing distances that people have to travel to work and for other purposes, and the growing traffic congestion in Indian cities.
- Growing popularity of SUVs and other premium vehicles: SUVs and other premium vehicles are becoming increasingly popular in India. This is due to many factors, including their spaciousness, comfort, and performance.
Some of the key trends in the Indian automotive sector for the upcoming festive season include:
- New vehicle launches: Many new vehicles are expected to be launched in India during the upcoming festive season.
- Discounts and offers: Automakers are expected to offer attractive discounts and offers on their vehicles during the festive season. This is to attract buyers and boost sales.
- Increased focus on digital sales: Automakers are expected to focus more on digital sales during the festive season. This is to make it easier for customers to buy vehicles online.
More facelifts will be taking place as Diwali draws closer. It’s anticipated that Tata Motors facelift versions of its popular SUVs, Safari, and Harrier, will find favour among buyers. According to a Tata Motors spokesperson, “We anticipate significant industry growth during the holiday season and the entire fiscal year; the industry is likely to reach four million units. With so many options available on the market, the movement toward electrification is expected to continue to gain momentum. We’ll keep moving quickly and expand our ICE and EV product lines. We intend to maintain our growth in FY24 thanks to new product introductions and robust demand across the board.”
In the first nine months of 2023, Audi India experienced an 88% rise and sold 5,53 vehicles. The business sold 2,056 units in the third quarter alone. They introduced new electric vehicles, such as the Audi Q8 e-tron and Audi Q8 Sportback e-tron, as well as the Audi Q8 Limited Edition and Audi Q5 Limited Edition in time for the holiday season.
“We have a solid order bank coming up to the holiday season”, said Balbir Singh Dhillon, the head of Audi India. “Audi A4, Audi A6, Audi Q5, and high-end vehicles like the Audi Q7, Audi Q8, Audi A8 L, Audi S5 Sportback, Audi RS5 Sportback, Audi RS Q8, Audi e-tron GT, and Audi RS e-tron GT are still in high demand. We anticipate strong demand for our electric range during the holiday season. While Performance and Lifestyle cars, including the e-tron line, saw a 42% gain within the same period, the SUV range grew by an astounding 187% in the first nine months.”
This year, the festive season is expected to be even more buoyant for the Indian automotive sector. This is due to a number of factors, including the rising disposable incomes of Indian consumers, the increasing demand for personal mobility, and the growing popularity of SUVs and other premium vehicles.
In addition, the government of India has taken many steps to promote the adoption of electric vehicles. These steps include the introduction of subsidies and tax breaks for electric vehicles. As a result, the demand for electric vehicles is expected to be strong during the upcoming festive season.