Revving Up: Festive Car Sales Soar Amid Shift in Consumer Preferences

Car sales surged by 40% during the festive season, especially for light motor vehicles like cars and SUVs in October. Consumer demand increased despite a modest overall sector growth of 1.8%. The trend shows a significant shift towards four-wheelers, with automatic and petrol vehicles seeing notable demand spikes.

In a notable shift this festive season, car deliveries surged by an impressive 40%, with a particular increase in sales of light motor vehicles such as cars and SUVs. Industry data reveals a significant rise in consumer demand for four-wheelers throughout October, even as the overall passenger vehicle sector recorded only modest year-on-year growth at 1.8%, totaling 401,447 units.

Insiders within the industry point to a deliberate strategy by several car manufacturers to limit production, aiming to maintain balanced inventories amidst rising demand. This trend indicates a growing consumer preference for four-wheelers during festive times, a trend that manufacturers and dealers are likely to exploit strategically in the future.

Key urban markets like Bangalore, NCR, Hyderabad, and Pune experienced substantial demand increases. Noteworthy preferences included automatic cars, SUVs, and flexible financing, aligning well with buyers' festive sentiments. According to Spinny, there was a 57% rise in automatic vehicle deliveries, showcasing an increased demand for convenience-oriented purchases.

During Dhanteras, Spinny's exchange program saw a spike of 39% as more buyers swapped old vehicles for new models, following the tradition of asset upgrading. Petrol vehicle demand rose by 50%, with SUVs and sedans also witnessing significant growth of 49% and 46%, respectively. Additionally, female buyers exceeded 20% of the customer base in October, marking a significant rise over last year.

Niraj Singh, CEO and Founder of Spinny, commented on the festive sales spike, stating, 'The surge in demand reflects the joy of new purchases, with a focus on more informed and convenient buying experiences that align perfectly with our promise of trust and transparency.'

(With inputs from agencies.)