Automobile dealers expect strong Dhanteras sales today, with demand holding up across two-wheelers, passenger vehicles and commercial vehicles, while supply constraints in electric vehicles are likely to limit deliveries in some segments.
Federation of Automobile Dealers Associations (FADA) President Sai Giridhar said the overall market sentiment was positive, with demand remaining strong across vehicle categories.
"Overall, it is a strong demand. And all segments put together, be two-wheelers, four-wheelers, commercial vehicles, all segments are going strong. Though probably in electric vehicles -- two-wheelers or four-wheelers -- you can see some supply constraints," he said.
Festival season boosts vehicle demand
Auto dealers said the festival calendar, with Dhanteras on November 6 and Diwali on November 8, placed a major retail sales period within the month.
According to them, vehicle registration trends during the festival season have been encouraging so far.
Entered November with optimism. FADA's online members' survey indicated that over 51 per cent of respondents expected sales to grow during the month, while 35 per cent anticipated flat sales and 14 per cent expected a decline.
Pre-owned car market sees strong festive demand
The pre-owned car market is also witnessing strong festive demand and is expected to strengthen further on Dhanteras. Many used car sellers said demand has outstripped supply.
"At Cars24, we delivered 750 cars on the first day of Navratri alone, registering 58 per cent year-on-year growth and nearly five times our usual Sunday volumes," said Cars24's CFO for India, Shivanshu Makkar.
He added that the company expects demand to strengthen further in Dhanteras, when vehicle deliveries traditionally see a sharp increase. He said that deliveries in Dhanteras could be three to four times higher than normal daily delivery volumes in the pre-owned car market.
FADA cautions against year-on-year comparison
However, FADA's Giridhar cautioned against comparing this year's Dhanteras sales with last year's, when this day fell on October 18, and demand was supported by pent-up purchases after GST cuts were rolled out.
"Year-on-year growth in terms of last year's Dhanteras is probably not the correct measurement. Because last year it was basically pent-up demand," he said.