Slowdown hits automobile dealers in the city during the festive season

Anvita Srivastava & Nikhil Borkar
Saturday, 7 September 2019

“There is already a slowdown in the automobile sector and it has translated into poor sale during this Ganesh festival. Last year, on the first four days of the festival, we had delivered almost 100 two-wheelers. ” said Bharat Thakkar, General Manager, Century TVS, a two-wheeler dealer.

PUNE: The festive season has not started on a good note for automobile dealers in the city. The slump in the automobile sector has resulted in a slowdown of sale.  

“There is already a slowdown in the automobile sector and it has translated into poor sale during this Ganesh festival. Last year, on the first four days of the festival, we had delivered almost 100 two-wheelers. However, this year, approximately only 60-65 vehicles were delivered. There is almost a 30 per cent dip in the sale at dealer-level,” said Bharat Thakkar, General Manager, Century TVS, a two-wheeler dealer.

Dealers also mentioned that during this festive season, the number of walk-ins and enquiries has dropped as compared to last year. “There is slump since Diwali last year and we continue to witness the same. We are receiving some enquiries but not as much. Usually, there used to be many  walk-ins during the festival which are missing this year. With the current slowdown, customers are not willing to spend,” Thakkar said.

“Since the festive season began, there are enquries and walk-ins but they are almost 50 per cent less as compared to last year. There is an overall lull and this year’s sale was 30 per cent less than the previous year. During the Ganesh festival last year, we delivered around 150 vehicles but this year, the number is around 100-110. However, we hope that the situation improves,” Reshma Kadam, Manager, Pashankar Auto Pvt Ltd- a dealer in Honda two-wheelers said.  

Sanjay Hyundai, one of the dealers, has been affected. Prashant Suttar, Assistant General Manager of Sanjay Hyundai, said, “As compared to other dealers of Hyundai, there has been 16 per cent drop in our sales. We delivered 40-45 cars in this Ganpati season, as compared to 100 deliveries last year. Automobile sector is in the higher GST cap and fear of job loss among people are the main reasons why dealers are facing crash.”

Deepak Watekar, Manager of Kothari Toyota, said, “This is our first year in the car sale market and we can’t compare previous year’s sales. Many factors like drying up of financial capital and fear of ‘auto scrap-page policy’ are the reasons for less number of cars being sold. Even then, we were able to deliver around 20-25 cars during the Ganesh festival and are expecting an increase.” 

Ganesh Abnave, Assistant Sales Manager, Chowgule Industries Pvt Ltd, said, “There is an overall slump of 30 per cent in the market at the dealer level. However, there is little slowdown in terms of festive walk-ins and bookings. But the situation is not as bad as compared to the hype created around the auto sector.”

Related News