After a prolonged slowdown, automobile industry finally has something to cheer for, as the festive season aided the sales for the automakers. However, it needs to be seen if the industry can sustain the positive trend in the coming months.
As per renowned industry experts, the sales are likely to decrease considerably as the festive season is over. However, some of them believe that the industry may gain from wait-and-watch approach. The major players in the sector will probably get some clarity by the end of current financial year, says Pawan Ruia, the chairman of Ruia Group.
While prominent automaker Maruti Suzuki witnessed a positive growth of 2.3 per cent in the wholesales of the passenger vehicles in the month of October, Honda also saw its sales pick up by 11 per cent, compared to the October last year. On the other hand, retail volume of Mahindra exceeded the wholesales by approximately 40 per cent and the retail sales of Tata Motors also went up by 36 per cent.
It is difficult to predict which way the pendulum will tilt, but the next couple of months are going to be crucial, according to Pawan Ruia, the chairman of Ruia Group.
Earlier, cost of car ownership, high taxes, high insurance costs, etc., had impacted the market on a larger scale. At this juncture, the festive discounts have provided some relief to the customers. The industry will aim to sustain these discounts to reap more rewards through positive consumer sentiment till the end of current year.
However, it will be interesting to see which way the momentum will swing once the validity of the discounts is over. It will important for the automobile industry to stay ahead of the curve and plan for the future to avoid a major dip in sales in the next quarter.