Marriages help auto firms fight demonetisation
Gifting cars and two-wheelers is a popular culture during marriage, and this is pushing up sales.business Updated: Dec 09, 2016 15:21 IST
Two of the leading car dealerships in Ranchi, the capital of Jharkhand, said that people are not only coming back to dealerships, but have also started purchasing cars and bikes.
“Thanks to the marriage season, which has kicked in, sales are returning. We sold more cars in the last one week than what we sold in the entire November, since Modiji announced note-bandi (ban),” said the owner at one of the dealerships.
Gifting cars and two-wheelers is a popular culture during marriage.
In Delhi, too, a Maruti dealership owner said: “People are paying the down payment by cheque or a demand draft, and the rest is on loan… We don’t thing that the total impact will be more than 10%.”
The comparisons are made against expected sales of November, which are usually made in advance, based on which auto makers make dispatches to dealerships.
A Hyundai dealership is south Delhi, which witnessed a 35% drop in sales in November, said that due to marriages scheduled for the year-end , sales are up. “The negative impact is less than 10% to 15% now,” an executive at one of the dealerships said.
Sales of two-wheelers have fallen around 6% after demonetisation, said YS Guleria, head of sales and marketing at Honda Motorcycles and Scooters. Estimates, by the end of November, showed that sales could fall 20%.
“We have now returned back to 90% of what it usually is,” said Suresh Babu, head of product planning and marketing at Suzuki Motorcycle India.
“Things are getting better for retailers. But wholesale numbers will be impacted in December, as car companies pushed inventory in November… Any company, like Maruti, where there was a long waiting period for cars, will be less impacted,” said Himanshu Sharma, auto analyst at Centrum.
First Published: Dec 09, 2016 15:21 IST