Owing to the continuous after-effects of things like increasing crude oil prices, domestic market inflation, etc, the sales of cars in the Indian market has continued to dip in the month of November 2018. Even festive occasions like Dussehra and Diwali could not do much good for the automotive companies as their sale charts are reporting a drop in the sales. When compared against the data of previous month this year and the same month last year, most companies report a dip in the numbers.
However, the conditions were not the same throughout the year. The mid of the year, especially July 2018, was quite productive in terms of the number of four-wheeler sales, during which even some companies saw a growth in double-digits. This led to an increase in their expectations for a wonderful festive season, however, the actual results are only disappointing.
The political uncertainty, continuous depreciation in rupee’s value and the increase in fuel prices are being cited as the main reasons behind this unexpected drop in the sales of cars in the Indian market. The overall GDP and industrial growth of the country were however positive during this time, which did not seem to have any impact on the buyer’s sentiment which still appears to be recovering from the initial shocks.
The year 2018 was quite impressive in terms of new vehicle launches. Almost all the top auto companies introduced fresh cars, SUVs, facelifts and other models for Indian buyers in the festive season. In a bid to increase the sales, carmakers also introduced a number of offers, discounts and schemes on their offerings during the season, but most of it was in vain, as the sales still did not pick up as expected.
Now, in an effort to clear out the stock before the year ends, dealers and manufacturers are offering huge year-end discounts and offers on all top-selling cars and other four-wheelers.
However, not all was bad for all the automakers in India. Hyundai Santro 2018, which was introduced by Hyundai recently, got over 10,000 pre-bookings in just about a month or two, which is a record in itself. Following the trend, the newly-launched Maruti Ertiga also managed the sale of around 6,000 units in the very first month of its launch. Mahindra’s top-class SUV, the Alturas G4, also received s good initial response along with 216 bookings since the launch in November 2018.
Overall, the month of November 2018 was a mix of happy and sad moments of the car manufacturers and dealers in India. Most of the big brands managed to maintain the core sale target. The more positive changes are expected to come as the fuel price drops and the value of Rupee appreciates in the coming days.