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No reasons to smile this festive season for automakers; as sales enhances only by 5-10%

The car manufacturers in India were counting on the festive season; to pump up their sales volume, which ended some days ago. The results are out and seemed to be gloomy, if seen from the eye of a passenger carmaker. On the contrast, the two wheeler manufacturing firms had their true festive season with their sales moving with an upward increase.

The festive season which falls between Navratri to Diwali records an increase in the customer footfall at the car showrooms resulting in boost of sales by 15 percent to 20 percent on average every year, as said by an industry expert. He added that usually an increase is seen every year, but this year the carnival fell flat with an augment in sales of only 5 percent to 10 percent. This minimal growth too was an outcome of heavy discount, freebies and other attractive schemes offered by the dealers and car manufacturers, he further added.

Higher interest rates and increasing petrol prices were the root cause of this debacle, as a lot was expected out of this festive season, which in some manner has dragged the company to rethink on its strategies, informed Honda Siel, Senior Vice President for Sales and Marketing, Mr. Jnaneswar Sen. The company only manufactures petrol powered vehicles in India, and has no diesel automobile in its line-up.

Mr. Sandip Singh, Deputy Managing Director for Marketing at Toyota Kirloskar said that there were customers observed at the retail outlets of the company, but still it lacked the enthusiasm among the car buyer this season as compared to the last year’s festive season.

The second largest passenger carmaker Hyundai which launched their entry level small car Hyundai Eon; the Maruti Suzuki Alto contender, this festive occasion was a crowd puller to its showrooms with about 9000 to 10,000 walk-ins per day, stated Mr. Arvind Saxena- Director (Sales and Marketing), Hyundai Motors. But the same amount of zeal lacked for the company’s other car models, he said. In the coming days the enquiries will obviously see a downfall which will make the auto-market an insensitive place to survive.

The Maruti spokesperson said that a bit relishing factor these days is the diesel cars, for new Swift diesel the company had satisfactory bookings. General Motors Vice President, C. Balendran said that this festive season the series of diesel run vehicles has saved them a bit from the ongoing heat, as the demand for Chevrolet Beat diesel, Chevrolet Cruze diesel and Chevrolet Tavera diesel is up, which will help them to register a growth of 20 percent.