Despite a two-digit decline in automobile retail sales in September, the market showed signs of recovery just before the festive season, boosting expectations for October. According to vehicle registration data, approximately 15.1 lakh vehicles were registered by 2 PM on Tuesday, a 13.28% decrease compared to the 17.4 lakh units registered in the same period last year. Industry experts note that these figures are based on registrations, and actual deliveries may appear later. Some September sales are expected to be reflected in October’s data. Weak demand was observed in the first three weeks of September as buyers awaited potential discounts and changes in GST rates. The period of Pitru Paksha also led many to postpone significant purchases.
Sales accelerated from September 22nd, coinciding with the start of Navratri and the impact of GST adjustments. Showrooms experienced increased foot traffic, bookings, and inquiries, particularly in the passenger car and two-wheeler segments. Maruti Suzuki sold over 75,000 vehicles in just four days between September 22nd and 25th. In contrast, Maruti sold around 1.35 lakh vehicles throughout the entire month of August, indicating a strong recovery towards the end of September.
Experts caution against drawing conclusions based solely on September’s figures, as the timing of festivals differs from the previous year. Navratri began in October 2024, hence September did not experience the same festive impact. This year, demand started to increase from late September.
The automotive industry is optimistic about the coming months, anticipating sustained demand due to the festive season in October, followed by the wedding season. New GST rates are also expected to support growth, with 18% tax on petrol cars up to 1200cc and diesel cars up to 1500cc, 40% on larger vehicles, and only 5% on electric vehicles.
