With the economy sending out positive signals and the festival season kicking off with Onam next week, automobile companies expect better sales than in August, when only Maruti Suzuki, Honda Cars, Hyundai and Nissan posted good numbers.

With petrol prices coming down, companies expect sales of petrol vehicles to rise during the festival season.

“We maintain cautious optimism for a good festival season on the strength of new products, increase in the demand for petrol cars, and improving customer sentiments,” said Rakesh Srivastava, Senior Vice-President — Sales and Marketing — Hyundai Motor India (HMIL).

While two domestic companies — Tatas and Mahindras — continued to see lower sales, they hope to cash in on the improved business sentiment after the new government took over at the Centre.

Pravin Shah, Chief Executive (automotive division and international operations), Mahindra & Mahindra, said his company was encouraged by the industry’s enhanced business confidence, reflected in signs of revival in the manufacturing sector. “We do hope that the Government continues to drive the agenda of reforms together with execution, which would spur investments,” he said.

“The festival season has already set in and will bring further cheer to the market. We are geared up for strong sales in the coming months,” said Jnaneswar Sen, Senior Vice-President, Marketing and Sales, Honda Cars India.

Two-wheeler companies are also optimistic, with some of them expected to launch new models during the festival season.

New two-wheeler models

Riding on strong demand, Hero MotoCorp is set to announce 10 new launches during this period.

“There may be a tapering of demand if the economic parameters remain weak in the coming months,” said Kumar Kandaswami, Senior Director, Deloitte Touche Tohmatsu India, adding that growth in automobile sales will, therefore, depend on demand drivers improving significantly, and at the right time.

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