- Car inventories are beginning to pile up for many, an indication that demand for four-wheeled mobility options in India may be easing.
Car manufacturers across segments in the country have had a solid past year or so with almost every brand reporting record monthly and quarterly sales. Factors such as pent-up demand caused by Covid-19 and shortage in semi-conductor chip powered prospects once both factors faded away. But the merry times may be over as experts warn of demand remaining strong but not feverish while inventory stocks build up.
A slew of new and updated model launches over the past 12 months have seen the Indian car market in particular scale new highs. Players in the mass-market as well as luxury segments have mostly made merry. But at present, there have been several factors at play that may not bode well for demand. The prevailing heatwave in northern India and the completion of marriage season are two of several influencers tapering demand.
As per an ET report, carmakers are expecting to report a record stockpile of four lakh vehicles worth ₹44,000 crore. Supply of vehicles to dealers are already starting to outpace demand. While still nowhere close to a situation where manufacturers would press the panic button, the remainder of the calendar year could well have months where sales tumble. For May alone, Maruti Suzuki – country’s largest carmaker, reported a sales tumble of 2 per cent. Others like Hyundai and Tata Motors were in the green but just about.
Should I buy a car now or wait?
Unless an urgent need, car-purchase decisions ought to be put off for a few months as manufacturers and dealers are likely to announce sweet deals to clear mounting inventory stock. Recently, Maruti Suzuki announced a price cut on its models that get AGS (automatic) technology.
While the uncertainities around elections may have impacted buying sentiments for a while, June is likely to see a slight burst in purchases. But the real measure of sales and the market sentiments is likely to come with the start of the festive season from second-half of August onwards. This period, unlike in the past few years, could once again turn customers into the real kings.
First Published Date: 03 Jun 2024, 10:37 AM IST