Festive Season Cheer | EV sales soar, financing schemes drive high-value purchases
Ahead of Diwali: In the auto space, Ola Electric expects its sales uptick to continue in the coming months. The EV company has made the most of the festive spirit so far, with a 2.5-fold sales increase during Navratri and Dusshera. Overall, retail sales rose 9% in September YoY.
The festive season has brought cheer to India's retailers with sales rising 9% in September year-on-year, according to a survey by the Retail Association of India. The survey also said retailers are betting big in the run-up to Diwali on expectations that this uptick in purchases will continue.
In the auto space, Ola Electric also expects sales volumes to continue in the coming months. The electric vehicle (EV) company has made the most of the festive spirit, witnessing a remarkable 2.5-fold sales increase during Navratri and Dusshera.
Anshul Khandelwal, the Chief Marketing Officer of Ola Electric, shared his insights with CNBC-TV18, emphasising that this growth has spanned across the nation. "Previously, markets like Uttar Pradesh, Madhya Pradesh, Chhattisgarh, and West Bengal, which had relatively low EV penetration, have seen a significant surge in sales this festive season," he said.
He added, "Even in rural markets, smaller cities like Kolhapur and Kozhikode have seen a substantial increase, with over 30-40% scooter penetration during this festive season. This reflects a significant upturn in tier-2 and 3 markets as well."
Khandelwal went on to reveal impressive statistics for Ola Electric, reporting a remarkable 30% year-on-year sales growth in September this year, accompanied by the sale of a staggering 24,000 vehicles.
In the realm of retail, Kumar Rajagopalan, CEO of the Retailers Association, observed that certain product categories are experiencing noteworthy monthly growth. These include electronics, particularly personal electronics like mobile phones. However, the garments sector has faced challenges during this festive season.
Rajagopalan noted that a substantial portion of the anticipated festive sales growth is expected to occur just before Diwali, India's most significant festival. He said, "The majority of the growth should happen in this 10-15 day period leading up to Diwali. After that, there's the three-month marriage season, during which we'll gain more insights into the market."
He also mentioned that the garments sector has not shown the expected growth, possibly due to increased spending on dining out and home delivery of food.
One noteworthy trend highlighted by Rajagopalan is the shift toward financing schemes for the purchase of larger, higher-priced items. He pointed out, "A positive trend we're noticing is the increasing use of financing schemes for substantial purchases, such as high-end mobile phones and televisions. Approximately 60-70% of these purchases are facilitated through various financing options, including zero-cost EMIs and special financing from financial institutions. Financing is on the rise and is bolstering overall consumption."
India's festive sales are not only a time of celebration but also an exciting period for businesses and consumers alike. The increasing demand for electric vehicles is an encouraging sign for sustainable mobility, and the growth in financing schemes is changing how people make high-value purchases.
(Edited by : Shoma Bhattacharjee)
First Published: Nov 1, 2023 6:35 PM IST
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