Carmakers Expect 15-20% Jump in Sales

New launches, aggressive pricing, discounts and stable loan interest rates revive consumer interest during festive period

CHANCHAL PAL CHAUHAN NEW DELHI

The Indian car market has come back to life with customers thronging showrooms to check out new models and special discounts since the end of shradh—a period most people in northern India consider inauspicious for shopping.
Top car manufacturers such as Maruti Suzuki, Hyundai Motor, Honda Siel and Toyota Kirloskar say they expect 15%-20% increase in sales during the festival season as new car launches, aggressive pricing and discounts and stable loan interest rates revive consumer interest after a dull start to the fiscal year.
“We have witnessed a pent up demand in last few days on account of Navratras. That could well lead to a genesis of revival in the otherwise damper car market,” a Maruti Suzuki executive said, requesting not to be named.
All the new launches including the new Maruti Swift, Honda Brio, M&M XUV500, Toyota Etios diesel and Hyundai Verna now enjoy long waiting period of up to eight months for delivery.
Car sales in the country had slipped year-on-year for two consecutive months before showing slight increase in September. But overall, car sales have been dismal so far this fiscal after rising 30% last year, as higher fuel costs, lending rates and overall inflation impacted consumer demand. The festival season seems to have revived consumer sentiment. Retailers too reported 50% jump in sales last weekend, the first one after shradh.
Hyundai Motor India Director (Marketing and Sales) Arvind Saxena said, “Festive months could spell much improvements
litre increase in petrol prices.
Financiers point to steady loan rates for the jump in demand.
Lenders did not to increase car loan rates after the central bank raised benchmark rate last month.
“There has been some decent start to the festive season with sales showing a marked revival in the early days. It was helped by both new car launches and stable interest rates that are expect to continue for the rest of the festive months of October and November,” Kotak Mahindra Prime Director Sumit Bali said.
HDFC Bank Senior Vice-President, Auto Loans, Rajan Paintal too said the interest rates are expected to remain steady for the festive months.
HDFC Bank offers auto loans at 11.5%-12.5% range and Kotak Mahindra Prime charges 11.25%- 12.5% interest. Public sector banks like SBI and PNB offer car loans at a lower 10.5%-11.5% interest rates.
for the industry.” He said the launch of 800 cc Eon compact car this month is expected to boost Hyundai’s sales and market share in coming months.
The signs of rebound in the car market come in spite of the recent . 3.14 per