About 1.3 million cars to be sold this festive season⬆️⬆️
It is predicted that the Indian passenger vehicle market is likely to have a bumper festive season with about 1.3 million cars sales during the August – November period this year, generating a turnover of more than Rs 1 lakh crores for the industry and contributing to the predicted 7% annual growth in the GDP.
The primary reasons for this sales boom to likely happen are:
✅Supply chain: We are aware that the passenger vehicles segment has been drastically affected in the past couple of years both in terms of vehicle sales and margins due to supply chain issues in semiconductor manufacturing and procurement. But with improved availability, this year car manufacturers have ramped up their production. Chip supplies are expected to be close to 95% of the requirement when compared to the 60% requirement in the previous year.
✅Cumulative sales: Historically, festival season sales account for roughly one-third of total fiscal sales. With the steady booking momentum seen in the last few months, it is extremely likely that sales will follow history this year.
A Maruti Suzuki executive expressed concern about the predicted increase in vehicle sales prices due to increasing interest rates and market regulatory changes.
Tata Motors’ passenger vehicles segment MD Shailesh Chandra expects the industry to grow in Q2 owing to a strong order pipeline and new releases coupled with festive demand.
How do you think this will affect their stock prices?
