Automobile retail sales experienced a decline in September; however, the market saw a turnaround due to heightened demand before the festive season. This development has raised optimism for October sales. Vehicle registration data indicates that approximately 15.1 lakh vehicles were registered by Tuesday afternoon, reflecting a 13.28% decrease compared to the 17.4 lakh units registered in the same period last year. Experts suggest that these numbers are registration-based, and actual deliveries might be realized later. Consequently, some of September’s sales will be reflected in October’s figures. The first three weeks of September witnessed weak demand, with prospective customers waiting for the implementation of GST changes and festive discounts. The Pitru Paksha period also led to many delaying significant purchases.
Sales momentum picked up from September 22nd with the commencement of Navratri and the impact of GST changes. Showrooms saw an increase in foot traffic, bookings, and inquiries, particularly in the passenger car and two-wheeler sectors. Maruti Suzuki reported sales exceeding 75,000 vehicles between September 22nd and 25th, a significant increase from approximately 1.35 lakh vehicles sold throughout August. This indicates a strong recovery towards the end of the month.
Experts caution against making assumptions based solely on September’s data, as the timing of festivals varies from year to year. Navratri began in October 2024, and September did not reflect the same festive impact. This year, demand started increasing from late September.
The auto industry remains positive for the months ahead. The upcoming festive season in October and the subsequent wedding season are expected to sustain demand. The new GST rates, including 18% tax on petrol cars up to 1200cc and diesel cars up to 1500cc, 40% on larger vehicles, and 5% on electric vehicles, are expected to contribute to growth.
