The Indian car industry is celebrating a remarkable surge in sales during the festive period from Onam to Bhai Dooj, achieving a historic turnover of Rs 1.3 trillion, as reported by The Times of India. This significant milestone is attributed to robust consumer demand, with companies collectively retailing an impressive 1.14 million vehicles, averaging nearly 13,000 units daily.
The success marks a notable recovery for the car industry, bouncing back from the Covid-19-related disruptions that plagued the sector. In comparison to the same festive period last year, where the industry recorded a turnover of Rs 85,700 crore, this year’s performance demonstrates a substantial growth.
SUVs emerged as the driving force behind this festive season’s demand, playing a pivotal role in contributing to the industry’s record-breaking turnover. Maruti Suzuki, a key player in the market, underscored the discernible consumer preference for feature-loaded SUVs. The average price of these vehicles saw an uptick, reaching Rs 11.5 lakh compared to Rs 10.5 lakh last year.
Despite the challenges posed by Covid-19-related restrictions in 2021, particularly supply constraints related to semiconductors, the industry is on the path to recovery. These restrictions were exacerbated by the war in Ukraine and curbs on certain supplies from China. However, the supply situation is gradually normalizing, especially for mainstream players. New supply channels are now available for automobile manufacturers, facilitating their resurgence in the market.
According to the TOI report, Hyundai India is optimistic about an 8.5-9 percent growth by the end of the year, with SUVs playing a substantial role in driving sales. The company successfully retailed 160,000 vehicles during the festive period, marking a noteworthy 9 percent growth compared to the previous year. Tata Motors also reported a commendable 15 percent growth during the festive season, signaling a positive trajectory for the company.
As the Indian car industry continues to navigate challenges and capitalize on consumer preferences, the festive season’s record-breaking performance sets a promising tone for the sector’s future growth and stability.
