Automakers in India record best-ever festive season this year; witnesses 41% increase YoY

Finance    16-Nov-2023
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In a huge development, the Automakers in India recorded their best-ever festive season this year. This came after passenger vehicle (PV) sales increased by 41% year-on-year in the three months between the festivals of Onam and Bhai Dooj.

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As per initial industry estimates, as many as 1.138 million passenger vehicles including cars, sedans and utility vehicles were sold in the local market between August 17 and November 14.
The previous peak in sales was in the corresponding festival months of 2020, when consumers had bought some 934,000 vehicles. Demand at the time, however, was skewed due to lack of sales during the national lockdown at the onset of the pandemic.
This year, demand increased across categories, including the entry-level, expanding the share of small cars in the overall market to 30% (from 27% seen so far this fiscal). The share of sports utility vehicles (SUVs) in overall vehicles retailed in the local market during the season stood at 48-49%.
According to The Economic Times, although the festive season this year was longer--spread over 90 days compared with 71 days in 2022-sales growth was robust (about 15%) even if the additional 18 days were to be excluded.
Onam marks the start of India's main festival season which reaches a high near to Diwali. The festive season accounts for 30-35% of retail sales for carmakers.