Wary lenders go slow on festive auto loan offers

Chennai: Despite the festival season being just round the corner, car financiers are not rolling out the big bang schemes that are de rigueur this time of the year.
Although car loan rates are the lowest in the last 12 months, auto dealers and marketers say banks and financiers are being extra cautious in view of the moratorium-related non-performing assets (NPAs) that they are expecting.
Kotak Mahindra Prime MD Vyomesh Kapasi said, “The car loan interest rates are down 125 basis points (100bps = 1 percentage point) year on year. The ongoing interest rates are the lowest in a long time with sub-9% for all segments and sub-8% for luxury vehicles. Even used car rates are now down to 12-12.5%.”
Car dealers say that most banks and NBFCs are offering longer tenure loans and that too for select customers.
M&M dealer Nikunj Sanghi of JS 4Wheel Motor said, “The festival
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Fewer festive discounts on automobiles this year

Chennai: With the festival season just round the corner, car companies are offering between Rs 25,000-Rs 75,000 in cash and other benefits on mass market cars and SUVs. However car dealers and car marketers say the discounts are 10%-20% lower (depending on the model and market) than last festival season. Also the benefit packages are higher on small cars and sedans whereas best-selling and/or just-launched SUVs are not offering any cash benefits at all.
Car dealers say the reason for the lower discounts is because of lower stock build up this year.
M&M dealer Nikunj Sanghi of JS 4Wheel Motor said that the packages this time round are lower because demand was poor or yet to kick in. In 2019 there were many more unsold cars waiting in dealerships. “Last year, the industry was making a transition from BS4 to BS6 and discounts were in line for liquidation of BS4
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Strong September for automakers ahead of the festive season: Car, bike, scooter sales shine again!

Industry experts attributed a big part of the increases to depleted inventories with dealers and also a low base. They cautioned that retail sales would not be as good. More details here.

 

Ahead of the festive season, wholesale despatches of cars, commercial vehicles (CVs) and two-wheelers’ automakers gained momentum in September. Industry experts attributed a big part of the increases to depleted inventories with dealers and also a low base. They cautioned that retail sales would not be as good. “Stocks with dealers have dropped to below the required levels,” an industry insider explained. He pointed out that due to the inauspicious period — shraadh and adhikmaas — retail sales in September have been somewhat subdued. Nonetheless, auto majors remain optimistic the pent-up demand will result in a good festive season. In a sign of a pick-up in economic activity, Ashok Leyland dispatched 7,847 vehicles in September, a 35% jump

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Festive demand, new offers revive auto sales

NEW DELHI: Festive cheer is fuelling a comeback for the auto industry. As the economy struggles amid the coronavirus-driven slowdown, the car and two-wheeler industry appears to be witnessing some green shoots, partly led by the excitement around new models and also because of the festive discounts and offers, which are expected to get deeper in the coming weeks.
As the Navratri and Diwali festive period comes closer, most of the auto companies reported strong wholesale numbers as they stocked up their dealerships on expectations of healthy retail sales.
Demand has been challenging this year as slowdown and job losses in metro towns have kept buyers away.

But companies said there were some positive signs. Toyota was the only notable company to have witnessed a decline in year-on-year sales, even though others such as Maruti Suzuki, Hyundai and Honda Cars grew by double digits. On the two-wheeler side, Hero Moto,

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Passenger car wholesales grow in September as automakers stock up in anticipation of festive sales

To be sure, the double digit growth posted by leading automakers comes over a low base of September 2019. Vehicle manufacturers have been witnessing continuous decline in sales from the second half of FY 19 due to economic slowdown and increase in prices of vehicles as a result of transition to the new safety and Bharat Stage 6 emission norms.

Additionally, vehicle dealerships suggest that retail sales during the month of September did not see a similar sharp uptick due to the two-week long shradh period.

Carmakers including Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Kia Motors India, Mahindra & Mahindra Ltd (M&M), Honda Cars India and Toyota Kirloskar Motor India have reported total domestic wholesales of 250,073 units, up 30% YoY.

Driven by continued recovery in the demand for hatchbacks, country’s largest carmaker Maruti Suzuki has reported total domestic passenger car wholesales of 147,912 units, up 34% YoY.

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Auto makers get some momentum in September as dealers gear up for festive season

MUMBAI: The market expects automobile sales to have recovered further in September.

In the run-up to the festival season, original equipment manufacturers are restocking inventory at the dealers’ end. Channel checks show that among vehicle categories, inventory build-up is relatively better for two wheelers, passenger vehicles, and tractors. On the other hand, commercial vehicles and three-wheelers are likely to remain the laggards.

“Our interaction with leading industry channel partners indicates two-wheeler inventory has reached 30–45 days on the expectation that sales momentum would continue into the festive season and passenger vehicles inventory would sustain at a comfortable level of 20–30 days. Inquiries were encouraging and better than last year,” Motilal Oswal Securities Ltd said in a report on 30 September.

The broking house expects wholesales in September to grow on a year-on-year basis for all segments barring medium and heavy commercial vehicles (M&HCV). It said, low starting inventory, a low

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Automobile dealerships expect flat or moderate growth in festive season: ICRA



a car is lined up in a parking lot


© Provided by Zee Business


Automobile dealerships are cautiously optimistic, expecting flat or moderate growth in the festive season after suffering twin blows of demand slowdown due to macroeconomic challenges and the impact of the coronavirus pandemic, according to ratings agency ICRA.

Across India, the automobile dealerships continue to face tough times. They are among the worst impacted segments within the entire automotive value chain, ICRA said in a statement.

After witnessing a sharp 75-90 per cent decline during Q1 FY2021 across the automotive sub-segments, wholesale dispatches are on a recovery trend with certain segments like two-wheelers (2W) and passenger vehicles (PV) registering year-on-year growth in the wholesale volume during September 2020, it added.

However, retail demand continues to remain weak, indicating wholesale dispatches are resulting in inventory build-up at dealerships, ICRA said.

Citing a survey done by the ratings agency across PV, 2W and the CV (commercial vehicles) segments

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Automobile Dealerships Expect Flat Or Moderate Growth In Festive Season ICRA

Automobile dealerships are cautiously optimistic, expecting flat or moderate growth in the festive season after suffering twin blows of demand slowdown due to macroeconomic challenges and the impact of the coronavirus pandemic, according to ratings agency ICRA.

Across India, the automobile dealerships continue to face tough times. They are among the worst impacted segments within the entire automotive value chain, ICRA said in a statement.

After witnessing a sharp 75-90 per cent decline during Q1 FY2021 across the automotive sub-segments, wholesale dispatches are on a recovery trend with certain segments like two-wheelers (2W) and passenger vehicles (PV) registering year-on-year growth in the wholesale volume during September 2020, it added.

However, retail demand continues to remain weak, indicating wholesale dispatches are resulting in inventory build-up at dealerships, ICRA said.

Citing a survey done by the ratings agency across PV, 2W and the CV (commercial vehicles) segments with presence in rural, semi-urban

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Automobile dealers expect flat or moderate growth in festive season: ICRA


Automobile dealerships are cautiously optimistic, expecting flat or moderate growth in the festive season after suffering twin blows of demand slowdown due to macroeconomic challenges and the impact of the coronavirus pandemic, according to ratings agency ICRA.


Across India, theautomobile dealershipscontinue to face tough times. They are among the worst impacted segments within the entire automotive value chain, ICRA said in a statement.


After witnessing a sharp 75-90 per cent decline during Q1 FY2021 across the automotive sub-segments, wholesale dispatches are on a recovery trend with certain segments like two-wheelers (2W) and passenger vehicles (PV) registering year-on-year growth in the wholesale volume during September 2020, it added.


However, retail demand continues to remain weak, indicating wholesale dispatches are resulting in inventory build-up at dealerships, ICRA said.


Citing a survey done by the ratings agency across PV, 2W and the CV

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Huge discounts on select BS6-compliant Tata cars this festive season

Huge discounts on select BS6-compliant Tata cars this festive season

28 Sep 2020: Huge discounts on select BS6-compliant Tata cars this festive season

In an attempt to boost sales this festive season, Tata Motors is offering great deals on select BS6-compliant models like the Tiago, Tigor, Nexon, and the Harrier in India.

These offers are valid until the end of this month and can be availed in the form of corporate discounts, consumer benefits, and exchange schemes.

Here are more details.

Car #1: Tata Tiago: Price starts at Rs. 4.69 lakh

The Tata Tiago comes with a Rs. 15,000 consumer scheme, Rs. 10,000 exchange bonus, and Rs. 7,000 corporate discount.

The car has an eye-catching look, featuring a chrome grille, projector headlights, and dual-tone alloy wheels.

Inside, there is a 5-seater cabin with a touchscreen infotainment console and two airbags for safety.

It draws power from a BS6-compliant 1.2-liter

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