Personal mobility, lack of public transport facility, festive purchases, some pent-up demand and rural momentum led to a surge in the PV demand, the report said.
Maruti and Tata Motors dealers sounded very happy with no supply side constraints and a very high festive demand as they observed more than 10 per cent growth in the retail demand over the last year.
Tata Motors dealers remain the most confident with strong enquiries and footfall conversion rates happening.
Within Arena, Alto and Wagon R are doing well, while Celerio showed a bit subdued sales. Within Nexa, except S-Cross all other models performed decently.
Increased demand was there for Alto and Wagon R which indicates down-trading owing to lower affordability stemming from job losses and salary cuts of customers during lockdown. Maximum competition is in the UV segment mainly from Hyundai and Kia, the report said.
For all the PVs too, the first time buyer category remained the highest and contributed 40 per cent. Geographically too the demand was more or less skewed towards north and west. Rural markets grew at a higher rate than urban ones. All the models and variants of M&M are still facing supply side issues. Before the festivals, dealers were confident that this issue shall get sorted out. However, there was a small improvement in it, resulting in a lackluster season for M&M despite demand, the report said.
On two wheelers, the report said that demand was overall good in the country in the 32 days of the festival. However, the growth that was observed in the initial six months post the lockdown was opened seems to have tapered off a bit. Most of the dealers across the country had a decent festive period.
Certain pockets in rural Uttar Pradesh have seen a subdued season as they mentioned that sugarcane and wheat produce did not get the expected pricing, leading to lower income in farmers' hands, hence lesser demand.
Demand in small cities and rural India was much better than urban or Tier-1 cities. Some Tier -1 and Tier -2 cities dealers also observed slight negative to flattish growth. In rural India, the growth was between 5-10 per cent.
There has been a conspicuous down-trading in the two wheeler industry as entry level bikes are finding higher demand. Passion, CD Dawn, HF Deluxe and Splendor from Hero's stable are high on demand. However, for Bajaj, Pulsar segment -- its bread and butter, found good demand. Hero's Xtreme 160R and X-Pulse are also great successes. Among the total buyers, first time buyers are the biggest contributors since public transport is not considered to be safe and offices have restarted, the report said.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.