Covid-19 impact: Rise in number of first-time buyers, additional purchase, says Maruti Suzuki
NEW DELHI : The percentage of first-time buyers and additional car buying have increased in the midst of the COVID-19 pandemic as customers prefer personal mobility over public transport, according to a senior official of Maruti Suzuki India.
The company also believes that while vehicle sales have improved in July, the outlook for festive season will depend on how the health crisis pans out, and the long-term vehicle demand will also depend a lot on the fundamentals of the economy.
"First-time car buying is up and replacement buying is down, which means exchange is down. However, additional car buying is also up because of the functionality requirement," Maruti Suzuki India Ltd Executive Director (Sales and Marketing) Shashank Srivastava told PTI.
Explaining reasons behind the development, he said, "That means people are preferring personal transport over public transport. At the same time their income levels are also probably going to be suppressed for sometime. Therefore, the trend is towards what we call 'telescoping of demand downwards', that is logical and intuitive. It is also reflecting in the data which we have so far."
The company had witnessed the share of first-time buyers going up by 5.5 per cent to around 51-53 per cent in the first quarter of this fiscal as compared to the fourth quarter of 2019-20.
MSI has also seen enquiry levels reach 85-90 per cent of pre-COVID levels with higher share in mini and compact segments at around 65 per cent against around 55 per cent earlier.
In July, sales of MSI's ...
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