Auto industry is expecting the growth curve to go upwards this festive season

The auto industry is expecting a cracker festival season in the backdrop of good monsoons and the seventh pay commission.

Automakers are hoping for bumper sales as consumers are lining up at different companies ahead of Dussehra and Diwali.

For instance, Maruti Suzuki registered over 29% increase in September dispatches. Among others, Maruti’s Baleno and Vitara Brezza are selling like hot cakes.

"The industry should see good demand during the festivals this year. The turnaround has taken place in rural markets and the momentum is expected to improve over the coming months once harvest takes place,” RS Kalsi, executive director for sales and marketing at Maruti Suzuki, told ET.

During the festive season, the auto industry reports a surge in sales. During last year Dussehra and Diwali, the passenger vehicle sales increased by 21% to about 2,68,000 units.

"Festive season will be good this year. But wholesale growth should be read for September and October together as stocks have been built at dealerships over the last one month. Besides, there are several holidays with Dussehra and Diwali all falling in October this year, which may pose challenges in production,” N Raja, director for sales and marketing at Toyota Kirloskar Motor, told ET.

Hyundai is also hoping for a 25% increase in India sales this festival month.

Rakesh Srivastava, the India head for sales and marketing, said, “Monsoon rains that have been evenly spread which bettered sentiments in rural markets, and the salary hike that has put more money in the hands of government employees, as the key reasons for the optimism.”
Manufacturers of two-wheelers also expect the growth curve to go upwards.

Ashok Bhasin, head of sales, marketing and customer care at Hero MotoCorp, told ET, “The company has seen a good start to the season with the Onam in Kerala. There are green shoots in rural markets. This is based on sentiment right now, but once the harvest is in, there should be strong demand over the next few months.”

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