Longer waiting periods, along with high cost due to recent price hikes, dampened the off-take of automobile sector during the auspcious occassion of Dhanteras, which marks the first day of Diwali celebrations.
On this day, goddess of wealth, Goddess Lakshmi, is worshipped, and it is important to purchase items of value like ornaments, gemstones, and any household appliance, made of metal including automobiles.
However, this year, a global shortage of an electronic component -- semiconductors or micro-chips -- has caused production issues, which, in turn, elongated the waiting period of popular automobile models.
Besides, high fuel cost combined with inflationary pressure dampened the sales momentum.
On the retail trend this Dhanteras, FADA President Vinkesh Gulati said that this was the worst festive season which Indian auto retail has seen in the last decade.
"While chip shortage is impacting supplies in PV, it is creating a huge shortage of vehicles in SUV, compact SUV, and luxury segment. Entry level PV is still seeing less demand due to customers conserving money for healthcare needs."
"2W entry level sales still not picking up due to rural distress, fuel prices and people still trying to save for healthcare emergencies rather then making a high value purchase."
In terms of CV segment, he said that already SCV has done well post unlocking and demand for intra state movement of goods.
"M&HCV performing wherever govt. infra projects coming up. In 3W, we are seeing a big churn happening from ICE to EV. Tractors which has already seen 2 bumper years taking a breather now."
ICRA Vice President & Sector Head, Corporate Ratings, Shamsher Dewan, said: "Two-wheeler sales have been weak overall during the festive season because of rising cost of ownership and subdued demand from rural markets."
"PV underlying demand is healthy but challenges on supply side remain a concern."
(With inputs from IANS)