Rise in first-time buyers: Maruti Suzuki

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People prefer personal transport over public transport due to the spread of COVID-19. But during lockdown time, their income levels are also probably less for some time. So, the trend is towards ‘telescoping of demand downwards’, that is logical and intuitive.

 Maruti had seen the share of first-time buyers going up by 5.5% to around 51-53 % in the Q1 of this fiscal as compared to the Q4 of 2019-20.

MSI has also seen inquiry levels attain 85-90 % of pre-COVID levels with a greater share in compact and mini segments at around 65 % against around 55 % earlier.

In July 2020, the sales of MSI’s mini segment cars comprising S-Presso and Alto grew by 49.1 % at 17,258 units as against 11,577 units in July 2019 but that of the compact segment was reduced 10.4 percent at 51,529 units as against 57,512 units in the year-ago month.

MSI overall domestic passenger vehicle sales in July grew by 1.3 % at more than ninety-seven thousand units as compared to ninety-six thousand four hundred and seventy-eight units in July 2019.

MSI has 3,080 outlets, out of which at one point in time Maruti had more than two-thousand and eight hundred functioning. Then global-local lockdown started and it keeps on varying because at different places for a moment lockdown is for 1 week, sometimes for 5 days. The total number of Maruti outlets that are open is between 81%-91% of total outlets.

Festive season outlook is a flexible purchase it will depend a lot on how sentiments are. In festival season buying of cars usually raises because consumers have a huge intention or liking to spend money but sentiment this time is a little unique.

According to Maruti Suzuki India Ltd Executive Director (Sales and Marketing), Shashank Srivastava festive season does carry in some optimistic sentiment every year, this year they have also to be cautious about sentiments as regards the Covid-19 situation. People have to see if there is optimistic development in the ‘pandemic side’, then obviously the festive season could be better. However, if it is pessimistic on the COVID side, let’s say there is a 2nd wave or there are more lockdowns, or spread of Covid-19 even more then that can impact sales negatively in the festive season.

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