InvestorQ : How has the festival sales actually been like for the auto companies like Hyundai, Maruti and Hero Moto?
diksha shah made post

How has the festival sales actually been like for the auto companies like Hyundai, Maruti and Hero Moto?

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Dilmini Mercia answered.
4 months ago
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One way to look at the auto sales is based on the production and off-take numbers reported by the auto manufacturers. But the real picture is evident only when you take the inputs from the dealers who are actually selling these cars and two-wheelers.

That is where the problem arises when you try to understand the sales performance of these large auto company giants from the perspective of the dealers. Ask the auto dealers and they will tell you that there is no festival euphoria at all.

In fact, most of the auto dealers have confirmed that the volumes of auto sales actually fell by 24% in the month of Oct-20 if looked at on a yoy basis. Even the FADA which is the association of auto dealers has confirmed these numbers on auto.

Now comes the problem. This is contrary to the extremely rosy picture painted by the auto leaders like Bajaj Auto, Hero Moto, Maruti and Hyundai. These companies have been consistently talking about double digit growth in off-take numbers.

It does now look like the vehicles are reaching the dealer showrooms but it is yet to translate into consumer demand in any significant way. The COVID is still leaving a pall of financial uncertainty which is impacting the ability and willingness to spend.

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