Festival lifts car sales, but two-wheelers lag

The Navratri festival was one to cheer for the passenger vehicle makers, who saw strong sales, but left two-wheeler makers in lurch as they saw subdued sales.

Tata Motors Ltd saw passenger vehicle bookings doubling and retail sales surging 90% during Navratri.

On other hand, sales of twowheelers were subdued, dealers association said.

Fewer product launches, lower buying by food delivery aggregators, and bleak job scenario has been major reasons for the muted demand for two-wheelers, experts said.

Retail sales of two-wheelers and passenger vehicles were expected to rise in the festival season as the outbreak of the novel coronavirus was expected to push for the demand for personal mobility due to social distancing norms and capacity restrictions on public transport systems. Bajaj Auto Managing Director Rajiv Bajaj reportedly said on Monday that sales of twowheelers have been disappointing during the Navaratri, especially in the entry-level 100 cc segment.

Bajaj's sentiment was echoed by the president of Federation of Automobile Dealers Association Vinkesh Gulati, who said two-wheeler sales witnessed a pent-up demand in June, July and August but have been subdued since then.

Normally, two-wheeler sales are based on the customer sentiment in the rural and semi-urban markets, while passenger vehicle sales take cues from both rural and urban markets, Gulati said.

He added that while urban market is seen coming back on track since last month, rural demand is now muted.

"We are still hopeful, we have Diwali ahead. Maybe we will see a bounce back, but as of now it is not very positive," he added.