The SUV demand is on the rise during the festive season in India. But that’s not the only surprise. The main point here is that despite the automobile market being strangulated by a spate of slowdown, the SUV demand is on the rise.
Truth be told, there are concerns everywhere. Not only in India is there a genuine concern considering the fall in automobile demands but even mainstream European countries that are responsible for an overwhelming majority of luxury cars- sedans and SUVs- are reeling under the effects of sluggish growth in the automotive space.
Where the past quarter is concerned, then the country has witnessed a sheer lack of demand in the automobile segment. Car ownership, as a whole, has witnessed a whirlwind change of sorts, truth be told.
Much of the change, experts and specialists believe, is down to the way young India prefers to navigate or commute for everyday basis. No longer is the concept or philosophy of private car ownership the prefered mode of operating. With the rise of ride-sharing facilities, there’s been an impact on the automobile sector.
Moreover, the ongoing trade war between the United States of America and China has gone on to adversely impact various segments of the trade.
So in that regard, any change that can be felt is down to cultural factors. For instance, in India, the festive season is considered a harbinger of good change; where ownership or purchase of new items or articles is considered a sign of good omen.
This has played well into the hands of the SUV makers because there’s an change on the cards: SUV demand on the rise during the festive season.
NDTV highlighted the matter in greater detail:
That said, the negative trend in auto sales continues to distress the industry as overall sales are constantly tremendously under pressure. And someone will have to introduce a change in that sort.
During the period of September 2019, the passenger vehicle segment was noted to be down by 23.69 per cent at 223,317 units as opposed to 292,660 units in the same period last year.
The passenger cars segment took a major hit in September witnessing a YoY sales decline of 33.40 per cent at 131,281 units as opposed to 197,124 units in the same month last year while the vans segment which already has a low base with lesser offerings recorded a whopping decline of 42.66 per cent at 10,411 units as compared to 18,156 units in the same month last year.
In addition to the above, it’s important to note the following:
Surprisingly, despite attractive festive season offers, sales of two-wheelers in the same month went down by 22.09 per cent at 16,56,774 units as opposed to 21,26,445 units a year ago.
Sales of three-wheelers in September 2019 went down by 3.92 per cent at 66,362 units as compared to 69,066 units which were sold in September 2019.
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The commercial vehicle segment too witnessed a slump of 39.06 per cent 58,419 units against 95,870 units which were sold in the same month last year.
Overall, the entire auto industry (including Quadricycles) recorded a sales decline of 22.41 per cent selling 20,04,932 units in September 2019 as opposed to 25,84,062 units which were sold a year ago.