Why vehicle makers and dealers are bracing for dull festive season

Still hoping for Diwali turnaround but many say this is over-optimism, given the situation thus far

“It doesn’t look like a festive season,” says a dealer for two of the largest automobile brands. 

This summarises the mood of those in the automobile business, at a time when sales typically get a boost. The 40-day period from Navratra and ending with Diwali is considered peak season for automobile companies. As a rule, it accounts for close to a 5 per cent of annual sales for passenger vehicles (PVs) and a third for two-wheelers.

This year is different. A high fuel price and a steep rise in insurance premium outgo, among other factors, have adversely impacted buyer sentiment.