10.32 lakh vehicles sold across India in nine days of Navratri, two-wheelers lead

Vehicle sales in India reached a high figure during Navratri this year. In just nine days, 10.32 lakh vehicles were sold across the country, which works out to more than one vehicle every second. The numbers show that enthusiasm for buying vehicles is rising in the festival season.

Two-wheelers accounted for the largest share of the sales. Demand for two-wheelers saw a good increase during Navratri. Customers in both villages and cities preferred buying two-wheelers, which gave momentum to overall sales. An affordable vehicle for daily commuting, festival offers and the various finance options available for purchase also helped two-wheeler sales. The two-wheeler performance has given the auto industry good signs at the very start of the festive season.

On the other hand, although overall sales appear to have risen, sales of passenger vehicles, that is cars, have fallen compared with last year. One important reason is believed to be that GST-related changes last year had created separate demand during the festival period. It is therefore necessary to keep in mind that unusual rise of last year when comparing this year's figures.

Despite satisfactory sales figures, dealers are cautious. Car stock is high and the cost of buying a vehicle is also high, which is a challenge for them. If car stock stays in showrooms for long, dealers' capital can get stuck. The emphasis is therefore on supplying new vehicles only after estimating demand.

Navratri sales have given the auto industry a good start, but it will be important to see whether the same demand continues in the coming festival days. Companies and dealers will watch both the strong two-wheeler demand and the concern over car stock. The cost of finance, customers' readiness to buy and companies' offers could affect upcoming sales.