Festive Sales Gives Boost to Automobile Industry, SUV Demand Remains High

The 42-day festive sale that started from the first day of Navratri has been vigorous for the country's automobile industry. Vehicle sales have set a record during this period this year. The duration of the festival starts from the first day of Navratri every year till 15 days after Dhanteras.

According to the Federation of Automobile Dealers Associations (FADA), sales of passenger vehicles have increased by about 10 percent during this period as compared to the same period last year. The demand for SUVs has been increasing for the last few months and there have been huge sales in this segment even during the festive season. Recovery in demand in rural areas has led to an increase of 21 percent in sales of two-wheelers. Sales of commercial vehicles have increased by about eight percent. Apart from this, the sales of three-wheelers have increased the most by about 41 percent. Last year, India became the third largest automobile market in the world, leaving behind Japan. In this market, China is at first place and America is at second place.

Audi and Mercedes, makers of premium cars, have also made record sales in the festive season. Demand has increased due to the launch of new cars and strong consumer sentiment. German luxury car company Mercedes-Benz has made record delivery of cars on Dussehra, Dhanteras and Diwali. This is indicating the response of customers. Mercedes expects that the company will have record sales this year. However, supply chain disruptions may remain a challenge for Mercedes. This may affect the production of the company's SUV. The launch of new and updated models has helped Mercedes in increasing the pace of sales. Apart from models with petrol and diesel engines, the company also has Electric Vehicles (EV).

Customers are very fond of the Exter SUV of South Korean automobile company Hyundai. The company has received more than one lakh bookings for this. It was launched about four months ago. Hyundai has a target of selling six lakh units in the country this year and Exter can make a big contribution in achieving it. Hyundai Exter competes with Tata Motors' Punch, Nissan's Magnite, Renault's Kiger and Maruti Suzuki's Fronx.