Automakers are offering best discount schemes currently, says Vinkesh Gulati of FADA

It has been a weak start to the festive season in Maharashtra, Gujarat and Kerala, a survey conducted by CLSA revealed. Vinkesh Gulati— Director of United Automobiles, who is also the Vice President of the Federation of Automobile Dealers Associations (FADA), shared details.

Talking about the survey and the demand in the festive season, Gulati said, “We are not looking at a very good picture as of today. Everybody is expecting something to happen on 20th which obviously is not a very positive sign as of now. The Onam is now over, the Ganapati which is important for Maharashtra is over, the Vishwakarma Puja which is important for Bihar is also over and all the three of the festivals haven’t given the uptick what we expected this festive season to give. So now whatever is left is the Navaratri and Diwali for North India. The kind of enquiries we have there is growth, but the customer conversion of the closure is not happening and if there is some positivity on September 20th GST Council maybe we see an uptick and a little bit of growth or stability. But overall this festival is not looking that great it is a very gloomy picture as of now.”

Speaking about the inventory, Gulati said, “As of now, for dealers and the association, the stock is not a major issue. The issue is to at least see some conversion happening, retail happening because it has now been a year cycle where we have seen de-growth. The last year base was not that great. Even if we are able to maintain that base, it will be positive for the dealers and the auto, at least the percentage degrowing that we are seeing for the last 12 months which at least will come to stable or maybe a positive one.”