With secure private mobility targets dwarfing different client priorities within the Covid backdrop, gross sales of sedans, hatchbacks and SUVs climbed a fifth this Navratri and Dussehra as greater than 200,000 patrons reached out for his or her cheque books.
Bike-makers, against this, weren’t as fortunate: Gross sales of two-wheelers, notably on the price-sensitive finish of the market, have been marginally decrease to flat. The affect of flat bike gross sales was seen on the stocks: Bajaj Auto and HeroMoto each misplaced about 6% Monday, and had been among the many largest losers on the index.
However first, the excellent news.
Market chief Maruti Suzuki delivered its finest efficiency in about 5 years by delivering 95,000 automobiles. Hyundai Motor India, Kia Motors, and Tata Motors, too, registered file numbers, cashing in upon the pent-up demand within the festive season. Toyota Kirloskar delivered a 13% rise in retail gross sales through the nine-day interval.
Bookings by the season had been in lockstep with the variety of automobiles delivered, which means Diwali and Dhanteras could be as glowing because the Navratras.
Hyundai Motor retailed 26,068 models, a development of 28% over final yr, whereas deliveries had been greater at 30,000 models for a similar interval, climbing a fifth from final Navratri.
Tarun Garg, Director for Gross sales and Advertising and marketing at Hyundai Motor India, stated the optimistic momentum in gross sales of the previous few months continued throughout Navratri and Dussehra.
“On all parameters, the numbers are very optimistic. Not solely have the deliveries and retails grown by over 25-30% over the identical interval final yr, however the bookings and enquiries even have been very robust, indicating that the remainder of the season will probably be wholesome,” added Garg.
The deluxe drive
On the highest finish of the spectrum, Mercedes Benz India additionally broke into the inexperienced throughout Navratri and Dussehtra, delivering as many automobiles because it did final yr. That contrasts with a 40% decline to date in 2020 for the luxurious phase.
Rural demand continues to underpin automobile gross sales.
Veejay Ram Nakra, CEO for the automotive enterprise at Mahindra & Mahindra, stated deliveries had been greater than final yr for the nine-day competition interval. Deliveries couldn’t match demand as provides are getting streamlined.
“We had a really wholesome reserving momentum pre-Navratri and Dussehra and we proceed to have a really robust pipeline of bookings. Our bookings are up over 40% in SUV’s and at an general degree…, are up about 20% through the 9 days of festivals,” stated Nakra. “Rural continues to drive robust numbers.”
This yr’s Navratri and Dussehra included sooner or later lower than the customary 10, and the festivities had been preceded by Adhik Maas (or a further month in Hindu calendar) throughout which some buy selections and deliveries had been made.
In 2019, the 10-day competition interval was preceded by 15 days of shradh or inauspicious interval. Folks often defer bookings or don’t take deliveries through the shradh.
Bikes play catch-up
In the meantime, two-wheeler gross sales remained tepid within the metros and tier one cities with commuter trains and metros remaining largely out of bounds for the general public, thus decreasing the necessity for short-haul commutes from house to the closest suburban railhead.
Rakesh Sharma, ED, Bajaj Auto, informed ET that festive gross sales now are flat in comparison with the identical interval final yr. However contemplating the shutdowns, he stated the flat gross sales development was not stunning.
“The emphasis on 30 days of festivities is overblown and its extrapolation might be deceptive. The true take a look at will probably be over the subsequent few months when the warmth and dirt of the season has settled. That interval is tough to foretell and sadly, now we have no different possibility however to attend, observe after which reply,” added Sharma.
The weekly run-rate of the two-wheelers registration for the week ended October 17, 2020, was 220,029 models, information from the Vahaan platform confirmed. This means that each day gross sales for the week earlier than the Navratri was round 31,432 for two-wheelers.
“Navratri retail volumes might not strictly be comparable with final yr’s Navratri as this yr, the competition has solely a nine-day window in contrast with ten days within the earlier yr, and sooner or later within the competition interval might add 50,000-52,000 of incremental gross sales,” stated an govt at a number one two-wheeler maker.
A Hero supplier in western UP stated that the Navratri gross sales have been just a few models decrease than final yr’s. Steep worth will increase within the entry-level phase attributable to new emission norms and crop cost delays have put a lid on gross sales within the extra worth elastic finish of the market.
A Honda supplier in Telangana stated that bike gross sales have been surpassing final yr’s Navratri volumes, and provide constraints might have an effect on bike volumes forward of Diwali. Scooter gross sales stay muted.
The month-long interval between the beginning of Navratri and Diwali sometimes accounts for about double the month-to-month common of the yr for two- and four-wheeler gross sales. A big a part of this demand is within the North and East, which collectively account for 50-55% of whole gross sales of two-wheeler and passenger automobiles. At its peak, although, the festive season would report 3.5-Four instances the same old month-to-month run-rate.