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

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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.

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.”
With regards to the discount schemes, he said, “The original equipment manufacturer (OEMs) schemes are huge as of now. It is actually double to what it was there in the last festive season. Even the dealers are rolling out a lot of discounts to close the cases because they also know the BS-VI is coming over, any stock which we continue to have in BS-IV will be a problem for the dealers. So if anybody wants to buy a vehicle this is the best time to buy. All the passenger vehicles are at this time have the best of the schemes ever. In my last 30 years of this automobile trade, this is the best I have seen. In addition to that scheme, the dealers are also supporting the customer wherever the case has to be closed. So the discounts and the schemes are the best, let us see if the customers buy it and some growth comes over.”

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CompanyPriceChange%Gain
Adani Ports731.05 36.70 5.29
NTPC118.00 4.45 3.92
Titan Company1,742.85 31.55 1.84
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HDFC Life718.75 9.55 1.35
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NTPC117.95 4.40 3.87
Titan Company1,740.85 31.90 1.87
SBI419.55 6.75 1.64
HUL2,516.10 35.35 1.42
Bajaj Finserv12,161.70 163.70 1.36
CompanyPriceChange%Gain
Adani Ports731.05 36.70
NTPC118.00 4.45
Titan Company1,742.85 31.55
SBI419.75 6.85
HDFC Life718.75 9.55
CompanyPriceChange%Gain
NTPC117.95 4.40
Titan Company1,740.85 31.90
SBI419.55 6.75
HUL2,516.10 35.35
Bajaj Finserv12,161.70 163.70

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