With the just concluded Ganesh Chaturthi festival in late September and with the onset of festivities and celebrations in October commencing with the 9-day Dussehra or Navarathri festival followed by Diwali, ‘the Festival of Lights’ in November, it is a long haul of celebrations, auspicious junctures and good times to indulge in some good, prudent buys. And woven into this important buying episode, is the purchase of a Car, which is still a thought-out, conscious and a one-shot experience for most consumers in India. And therefore, to aid your buying or to nudge you to make a decision, the festive season and the many offerings that are doled out during this period are what prompts or seals the deal for you the customer, when it comes to buying your dream vehicle.
Why the festive season? What drives car sales during this time of the year?
In India, it is said that at least a third of cars or automobiles are sold during September-November, ringing in the onset of celebrations and festivities. Consequently, dealerships and even automobile makers really focus on launching new entrants and models, with a bout of new car launches followed by huge discounts and markdowns on existing older models so as to help increase car sales volume and also help clear older inventories.
Therefore, every automobile maker from Hyundai to M&M, Maruti to Honda, Tata to Toyota are all out to woo consumers with attractive discounts and price cuts.
Yes. Carmakers and dealers are aware that ‘Customer is King’. And there are many comparable reasons why customers are courted and pursued to buy their elusive choice cars:
- With the launch of newer models, the older models inventories pileup, therefore, eye-catching discounts and offers are the best way to help clear older stocks.
- The auto industry always sees a positive market turnaround during the festive season, as the buyer sentiment is on an uptrend, boosting sales and setting cash registers ringing.
- Automakers unveil their best offers typically during this time of the year, the festive season.
- Depending on the make, model and options, consumers can really avail huge cash discounts and there is scope for good savings.
- To help sustain sales, to offset average monsoons and to counterbalance rural sales, dealerships and carmakers package in offers that are too good to resist.
- The second-hand or used-car market is definitely giving new-car dealers a run for their money, with a neck-and-neck competition and therefore, offers and discounts are a way to counter this.
- The sales volumes of smaller cars are higher owing to the many discounts and offers for this segment.
- Low inflation and recent interest rate cuts render a positive effect helping boost car sales.
- Falling fuel prices is a good poser for anyone especially, first-time, entry-level new-car buyers.
So what’s on offer here?
The blitzkrieg of sales promotions include discounts, markdowns, concessions and offers that come in all shapes and sizes. It can be cash-back offers, free accessorizing, gift cheques, free servicing for a couple years, holiday packages, gold and silver mementos, free vehicle insurance, limited-edition models, exchange offers, corporate discounts, referral bonuses, price markdowns and some long-term attractive schemes to pique customer interests.
What is the typical expected Car sales volume during the festive season?
Come October, which heralds in the holiday season and the festive season, dealers are really motivated as the car sales see a lot of buoyancy and are on an upward trend. The underlying feature is the good sales and faster clearing of inventories. New models are also revving up the sales quotient. It is said that in September 2015, sales were up 6.8% to 218,110 units as against 204,255 units, same time, last year.
The general forecast is that during the festive season the smaller car segment sales would definitely recover. Domestic car sales are expected to grow at a steady 15%-17% during the festive season; demands are expected to be driven up by nearly a fifth owing to positive market sentiment, an underlying demand that is slowly surfacing. Also, improving economy, lower inflation, interest rate cuts and reducing oil prices are also major contributors.
At closing note
Come the festive season, there is always a renewed sense of freshly infused buying optimism which is definitely a welcoming balm for both carmakers and dealerships. Companies unleash their new car product portfolios with a slew of launches and this is not limited to just budget or entry-level cars, but mid-sized and even high-end luxury car makers are devising innovative strategies in order to appeal to a larger audience.
With inventive promotional schemes, inimitable ad campaigns, it is a wide assortment of buyers out there. First-time buyers, exchange buyers, trade-ins all aided by a good interest rate cut, lower fuel prices and consumers being spoilt for choice, the stage is set, the sales momentum is back and the setting cannot be better with the growing sales figures being proof enough. But before you go-ahead and buy the car of your dream, don’t forget to visit IndianBlueBook.com to find the precise price of the car.