With festival season coming and semiconductor shortages improving, automakers expect vehicles to be delivered on time, so customers can pick up deliveries on “auspicious” days. .
According to the original equipment manufacturers (OEMs or car manufacturers) and their dealers, the Ganesh Chaturthi this year did not give them many numbers as expected, but they hope that Navratras would be better in terms of sales.
“There are reservations and customers also come during ‘Sradh’, just to reserve their cars and pick up delivery during ‘Navratras’ or even later dates”, Tarun Garg, Director – Sales, Marketing and Service, Hyundai Motor India, said.
Speaking on the sidelines of the Federation of Automobile Dealers (FADA) 4th Retail Conclave – ‘Success Through Synergy’, Garg said there were 3,300 units booked on Monday compared to around 2,700 units on any given day , just to give some perspective .
According to Shashank Srivastava, General Manager (Marketing and Sales) at Maruti Suzuki India, the demand is greater in the market than the supply due to the shortage problem of semiconductors.
“Pending bookings do not paint an accurate picture of demand patterns because it was supply issues that created this pending backlog. So the real picture will be clear once we have enough production going. festival season, if we have production that matches the underlying demand, we will have very good numbers,” he said.
He noted that due to long pending bookings, the fourth quarter of FY22 saw sales of 9.22 lakh passenger vehicle (PV) units and in the first quarter of this year, 9 .10 lakh units – so this is the first time in history that there were two quarters of 9 lakh plus units. And in the current quarter, it is expected to do more than 10 lakh PV units.
“Therefore, three consecutive quarters of 9-lakh plus unit sales are only possible due to increased availability…future demand would only be known once we clear backlogs,” he said. added Srivastava.
Ashish Harsharaj Kale, former chairman of FADA and dealership of Nissan, Mahindra & Mahindra and BharatBenz, said sales traction had eased a bit over the past few days but was manageable. “But with the improvement of the semiconductor situation, the waiting period will also be reduced to less than two months in the coming days,” he said.
However, in the two-wheeler segment, the situation still looks difficult for dealers, as rural demand has not yet recovered.
“Even at festivals, while two-wheeler sales are going to be up from last year (because of the weak base), but the growth we normally see is not the growth we’ll see at two-wheelers even during festival season I ask OEMs please don’t provide me with supply…that’s the kind of inventory I hold Festival demand doesn’t happen overnight…purchasing a car trip normally takes 60 days, so if the festival demand comes, we would have seen it by now,” said Nikunj Sanghi of JS Fourwheel Motors.
September 13, 2022