Car Sales Surge 40% During Festive Season in India
In New Delhi, India, car deliveries saw a remarkable 40% increase during the festive season, with a significant rise in the sale of light motor vehicles, including cars and SUVs, in October. Despite a modest year-on-year growth of 1.8% in the broader passenger vehicle sector, which recorded 401,447 units, consumer demand for four-wheelers surged.
Industry experts suggest that the restrained growth in overall numbers is due to some carmakers deliberately limiting production to maintain balanced inventories. This trend indicates a shift in consumer preference towards four-wheelers, especially during festive times, which manufacturers and dealers might strategically leverage in the future.
Key City Insights
Major cities like Bangalore, NCR, Hyderabad, and Pune experienced substantial demand. Consumers showed a growing preference for automatic cars, SUVs, and flexible financing options, aligning with festive buying sentiments. According to Spinny data, automatic vehicle deliveries increased by 57%, highlighting a trend towards convenience-oriented purchases.
Exchange Programs and Vehicle Preferences
Spinny’s exchange program saw a 39% rise as more buyers traded in older vehicles for newer models, a trend especially notable during Dhanteras. Petrol vehicles remained popular, with a 50% surge in demand, while SUVs and sedans grew by 49% and 46%, respectively. Women buyers accounted for over 20% of the total customer base in October, a significant increase from the previous year.
CEO’s Remarks
Niraj Singh, CEO and Founder of Spinny, commented on the festive spike, “The surge in demand reflects the joy of new purchases with a focus on more informed and convenient buying experiences, aligning perfectly with our promise of trust and transparency.”
Doubts Revealed
Festive Season -: In India, the festive season usually refers to the time around major festivals like Diwali and Dussehra, when people often buy new things, including cars.
Light Motor Vehicles -: Light motor vehicles are smaller vehicles like cars and small vans, which are used for personal or small business transportation.
Year-on-Year Growth -: Year-on-year growth means comparing the sales or performance of something from one year to the same time in the next year to see how much it has increased or decreased.
Automatic Cars -: Automatic cars are vehicles that change gears by themselves, making them easier to drive, especially in heavy traffic.
SUVs -: SUVs, or Sport Utility Vehicles, are larger cars that can carry more people and goods, and are often used for both city driving and off-road adventures.
Spinny -: Spinny is a company in India that helps people buy and sell used cars, offering services like car exchange programs.
Exchange Program -: An exchange program in car sales allows people to trade in their old car as part of the payment for a new or different car.
CEO Niraj Singh -: Niraj Singh is the Chief Executive Officer of Spinny, responsible for leading the company and making important decisions.