The initial three weeks of September witnessed weak consumer interest, as potential buyers delayed purchasing decisions.
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The initial three weeks of September witnessed weak consumer interest, as potential buyers delayed purchasing decisions.
India's overall retail automobile sales witnessed a double-digit drop in September, though a significant uptick in consumer demand during the latter part of the month has provided optimism to automakers anticipating improved performance in October. Vehicle registrations totaled 1.51 million units as of Tuesday afternoon at 2 PM, marking a 13.28 per cent decline compared to 1.74 million units recorded during the same period last year, according to data from Vahan.
Registration figures typically trail actual vehicle deliveries by several days, suggesting that a portion of September's sales activity will only appear in October's official data.
Also read: GST Cuts Spark Bumper Navratri Bookings And Deliveries For Mahindra, Maruti
The initial three weeks of September witnessed weak consumer interest, as potential buyers delayed purchasing decisions while anticipating festival season offers and awaiting confirmation on goods and services tax adjustments.
Market sentiment was further affected by the Pitru Paksha observance period, during which numerous Indian families traditionally avoid making significant financial commitments.
Consumer activity accelerated after September 22, coinciding with the start of Navratri festivities and the implementation of revised GST rates beginning to influence market dynamics. Dealerships across the country observed substantial increases in customer visits, vehicle bookings, and purchase inquiries spanning all categories, with particularly strong interest in passenger vehicles and two-wheelers.
India's leading automobile manufacturer, Maruti Suzuki, recorded sales exceeding 75,000 units during just a four-day window from September 22 through 25. For perspective, the company's August sales totaled approximately 135,000 units for the entire month, highlighting the dramatic late-September recovery.
Market analysts advised caution when interpreting September's figures independently, noting the different timing of festive celebrations compared to the previous year. In 2024, Navratri commenced only in October, meaning September lacked the seasonal demand boost currently driving this year's sales. This timing difference makes direct year-over-year comparisons less meaningful.
Automotive sector stakeholders express confidence about near-term prospects. With festival celebrations extending into October followed by the traditional wedding season, expectations remain elevated for continued consumer demand.
The restructured GST framework -- establishing 18 per cent tax rates for petrol vehicles up to 1,200 cc and diesel vehicles up to 1,500 cc, 40 per cent for larger vehicles, and 5 per cent for electric vehicles -- is anticipated to provide additional support for market growth.
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