Vehicle purchase to go into top gear
Survey indicates more women were keen about buying vehicles than men
By : k. sreedevi
Update: 2014-10-05 07:06 GMT
Chennai: Vehicle purchase is likely to be a part of the shopping list of south Indian families this festive season. In fact, a good number of married men are pegged to buy new cars or bikes in the next couple of months, ringing in the much-needed cheer to the automobile industry.
Boosting general sentiments, the vehicle purchase sentiment index has shown a considerable uptick this festive season, signifying that a larger number of Indian consumers are planning to purchase two- or four-wheelers within the next six months. The vehicle purchase sentiment index reflects people’s plan to purchase vehicles over the next six months, and, historically, the sentiment index has had a strong correlation with actual sales of passenger vehicles. This index has registered a steady uptick since bottoming out in April this year and has increased by 2.5 points to 17.5 in September, revealed Zyfin Research.
With the festive season coinciding with the uptrend in sentiment, auto sales are expected to be better this season, compared to 2012. However, with only a score above 50 reflecting optimism, and that below 50 an indication of pessimism, the market may still take its own time to bounce back to its heydays, it said.
The survey also indicates that the penchant to buy new vehicles is higher among married consumers (index of 19) who are mostly self-employed (index of 18.1). It also revealed that more women were keen about vehicle purchases (17.9) than men this season.
Sharing the optimism, Mr Rakesh Srivastava, senior VP (sales and marketing), Hyundai, said, “This festive season, we are seeing a significant increase in first-time buyers and exchange buyers, which is encouraging and will accelerate the positive momentum already being experienced in the last few months.”
Auto majors felt that the improved sentiment was already evident in the market. Mr Yadvinder S. Guleria, vice-president - sales & marketing, Honda Motorcycle & Scooter India Pvt Ltd, said, “September 2014 has been a phenomenal month for Honda. Our customer base has reached 18 million. We have recorded our highest ever sales of 4.38 lakh this month. From Gujarat to Kolkata, we are witnessing overwhelming customer response this Navratras and expect the cheer to continue in October 2014 as well.”
However, adding a word of caution, Mr Debopam Chaudhuri, chief economist, ZyFin Research, said, “Although the uptrend in vehicle purchase sentiment index suggests recovering willingness to spend, the low score still indicates a lot of pessimism. It will take some more time for auto sales to reach levels witnessed during 2009-10.”