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Automakers expect demand to pick up in festive season even as COVID-19 shadow looms large

Automakers expect demand to pick up in festive season

Automakers expect demand to pick up in festive season even as COVID-19 shadow looms large

Leading automakers Maruti Suzuki India (MSI), Honda and Tata Motors expect sales to pick up during the festive season, although there is uncertainty about their performance this year on account of COVID-19 pandemic. The country’s largest carmaker MSI has seen sales improve month-on-month from May till July, and expects offtake to remain robust during August as well. The auto major, however, feels that the festive season demand would depend on the COVID-19 situation. (Read: Maruti Suzuki XL6 sells over 25,000 units: Maruti Suzuki)

“We are relieved that sales bounce back has happened but we will have to wait and watch because a lot of this demand will be pent-up demand and we will have to see how steady the demand would turn out to be,” MSI Executive Director Sales and Marketing Shashank Srivastava told PTI in an interview.

Automakers expect demand to pick up in festive season

“I think it will depend on the economy and Covid scenario because car buying is a discretionary purchase and requires positive sentiment,” Srivastava added.

If COVID-19 situation improves, it would lead to improved sales and if somehow the scenario deteriorates then the sales would also be impacted, he noted. (Read: Kia Sonet sets new record with 6,523 bookings on the first day)

Srivastava said the festive season generally brings good sales as people are more inclined towards spending during the period.

“That is why demand is more in festive season. So in any year festive season is one of the better month for sales, but however this year we would expect festive season to be good but then we are very careful in making this conclusion as you can also have negative sentiment coming from COVID-19,” Srivastava said.

So coronavirus situation will predominate as far as sentiment is concerned this festive season, and therefore it is little bit uncertain what will happen during the period, he noted.

In any case, the company is ramping up the production to cater to demand while at the same time also strengthening finance options and digital medium to help customers in buying process, Srivastava said.

The carmaker has seen steady demand emanating from rural areas in the last few months and expects the trend to continue even in the rest of the fiscal.

 

 

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Source: PTI

 

Deepika Chauhan

Hello, I am Deepika Chauhan an automobile enthusiast. Presently working as a Media Manager and Writer. My aim is to guide and teach ways to manage, grow and scale business.
Earlier, I have been a part of Asian News International (ANI) as a Sub-editor cum Producer.

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