Passenger vehicle (PV) dealers expect better sales during the upcoming festive season compared with the same period in CY20 and CY21 owing to healthy demand and improved supplies from original equipment manufacturers (OEMs).
In the past two years, the country witnessed strong PV retails during the festive season (August-December), higher than the pre-pandemic period on both occasions.
PV sales stood at 1,213,801 units in the August-December period of CY20, according to data from the Federation of Automobile Dealers Associations (Fada). During the same period in CY21, as many as 1,199,975 units were retailed. In CY19, 1,142,976 units were sold in the five-month period.
The PV dealers FE spoke with said that pent-up demand and greater need for personal mobility led to robust sales in the CY21 and CY20 festive seasons.
While the PV demand has been healthy over the past few months, the improvement in semiconductor supplies has resulted in OEMs producing more vehicles, which in turn has increased the wholesale despatches to the dealerships.
The popular models of Maruti Suzuki India such as WagonR, Swift, Baleno, Brezza and Ertiga have a waiting period in the range of 4-42 weeks. For Hyundai Motor India’s Venue and Creta, the waiting period is 12-24 weeks. The customers will have to wait for 3-26 weeks for Tata Motors’ vehicles like Punch, Altroz, Nexon and Safari. Mahindra & Mahindra’s SUVs like Bolero, Bolero Neo, XUV300, Thar and XUV700 have a waiting period from as low as four weeks to as high as 22 months.
“The semiconductor crisis is largely abated. There is very little impact today, and the demand is what is driving the higher wait times now,” Anish Shah, MD and CEO, Mahindra and Mahindra, said at a press conference on Friday after the declaration of the company’s June quarter results.
The automotive industry even recorded its highest-ever monthly wholesale despatches of PVs in July at 342,326 units, going past the previous best of 334,471 units in October 2020.
With the waiting period being relatively higher at present, particularly on SUVs, festive offers on popular models might be far and few. They are usually in the form of cash discounts, exchange bonuses and corporate discounts. On average, the festive offers are in the range of `15,000 to `25,000 on PVs.
A Delhi-NCR dealer said, though he is not expecting OEMs to provide substantial cash discounts on SUVs or premium hatchbacks, exchange bonuses and corporate discounts might be furnished on them. He also said entry-level models will have some offers to attract more customers, given their sales have been low of late.
The festive season will also see a host of SUVs entering the market as the OEMs look to make the most of their growing popularity in the country.
Maruti will launch Grand Vitara, while Toyota will introduce Urban Cruiser Hyryder. Both are mid-size SUVs. The new versions of premium SUVs like Tucson and Hector by Hyundai and MG, respectively, will also make their debut. Besides, Mahindra will begin customer deliveries of the new Scorpio-N premium SUV towards the end of September.