Passenger vehicle (PV) demand is anticipated to maintain its growth spur in the upcoming months despite the surge in ownership cost as well as production challenges.
Thus, Maruti Suzuki India who leads the PV market, believes that the nearing festive season will enhance the buying sentiments.
Recently, the sequential sales' momentum has been slowed down due to the increasing ownership and operating cost.
As per to the Executive Director (Marketing & Sales) of Maruti Suzuki India, Shashank Srivastava, stated that, "Healthy sales momentum is expected to be maintained during the main festive period starting from mid-October."
He added that, "Till now, the festival of Onam saw a decent sales uptrend. However, there are uncertainties on the supply side."
In India, the main raft of the festive season starts from Navratri till Diwali.
He added that the factors such as shift to personal mobility from shared transport, weak interest rates, migration towards established brands as well as pent up demand that are giving a push to sales momentum.
Srivastava said that rural sector is also doing well because the levels of income have improved.
At the present moment, the auto giant's 40 percent sales come from the rural areas while 60 percent is from urban India.
Maruti Suzuki India last month's total sales breached to 130,699 units from 124,624 units sold during the corresponding period of 2020.
The total sales includes the domestic sales of 105,775 units, exports of 20,619 units and off-take to other OEM of 4,305 units.
Srivastava said that the production has been impacted due to shortage in electronic components in August.
This shortage is serious as cost and waiting period increases due to slower production.
The automobile major has reported a decline of 8 percent in its vehicle production in August.
The auto giant has produced a total of 113,937 units last month as against the 123,769 units produced in August 2020.
The country's auto industry is considered to be highly price sensitive unlike those of Japan and Europe.
Currently, the auto market is struggling with increasing costs of steel, plastics and rare metals in addition to high forms of other levies, insurance and road tax.
Lately, the Maruti Suzuki India had to hike their prices due to increasing rates of commodity, especially those of steel, copper, rhodium and palladium amongst others.