This festive season, the automotive industry is witnessing a significant shift in consumer behaviour with demand for entry-level cars rising compared to two-wheelers, which have been traditionally preferred.
According to Naveen Narang, General Manager at Kuldeep Motors, a Maruti Suzuki dealership in Uttar Pradesh, this festive season buyers traditionally opting for two-wheelers are increasingly upgrading to entry-level four-wheelers, driving a surge in demand for small cars.
“The demand for entry-level cars has started to go up. Our numbers have increased, from two-wheelers to four-wheelers. The demand for small cars has increased suddenly,” he said during a conversation with NDTV Profit on Monday.
The trend is not limited to entry-level vehicles alone, though. Narang said demand has increased steadily across all segments, including SUVs and MUVs. However, the entry-level category, which had previously experienced a slowdown, is now seeing a remarkable rebound.
On sales trends across categories, he said there is demand in all segments, but the slowdown in the entry-level segment has reversed. So much so, that delivery timelines may stretch into December due to the current stock shortages and anticipated post-Diwali rush.
Last week, Maruti Suzuki India said it expected to sell 51,000 units this Dhanteras, a marked increased from 41,500 units sold last year.
In fact, India's automotive market saw its brightest Dhanteras yet, with more than one lakh passenger vehicles reportedly sold over the two-day period. The total retail value of these sales is projected between Rs 8,000 and Rs 8,500 crore, according to industry estimates, Autocar India reported. According to industry experts, the GST 2.0 reforms that came into effect from Sept. 22 is also driving up the demand for entry-level cars.
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