The weeks prior to the onset of the festival season seem to have remained subdued for the automobile sector, with analysts seeing a slow start to festive offtake. “Our recent interaction with leading two-wheeler (2W), passenger vehicles (PV) and commercial vehicles (CV) channel partners in key markets of Delhi, Maharashtra, Kerala and Rajasthan indicated no signs of demand recovery as enquiries-to-sales conversion continues to remain weak year on year,” said Deep Shah, research analyst, and Poorvi Banka, research associate, Institutional Equities, Prabhudas Lilladher Pvt. Ltd. “However, with the onset of key September festivals like Ganesh Chaturthi in Maharashtra and Onam in Kerala, there has been an increase of 5-8% in retail sales (especially in PV and 2W segments), while CV sales continue to remain weak,” they said. In the PV segment, the euphoria around new product launches is driving enquiries. Though the PV demand trend remained weak across major markets, with enquiries-to-sales conversion even weaker for existing models, recent launches such as Hyundai Venue, Kia Seltos, MG Hector and Suzuki XL6 have helped bring footfalls to showrooms.

(The Hindu)