Indian car sales face festive season slowdown as prices rise
Higher vehicle prices ahead of Navratri may curb the usual festive buying surge, prompting shoppers to consider cheaper models, used cars or delayed purchases.
The Indian auto market is entering the festive season without the price stimulus that drove last year's surge, as manufacturers roll out fresh models and deeper discounts. However, expected price increases before Navratri are likely to discourage many shoppers, who may opt for lower-priced variants, shift to the used-car market, or defer buying altogether. Dealers cite a demand-supply gap, with strong retail outreach but limited buyer desperation.
An executive from a major carmaker highlighted growing uncertainty and reduced sentiment amid rising input costs. Analysts point out that first-time buyers must balance upfront payments and EMIs with other expenses, while existing owners might rely on trade-in values. Overall, the affordability challenge could blunt the festive sales boost that typically lifts the market.
Why it matters
Price hikes could stall India's festive car-buying boom, affecting manufacturers, dealers and consumers alike.
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