Auto firms brace up for the festive season with slew of new launches
Close to a dozen new car and SUV models are likely to hit the road this festive season which kicks in from Ganesh Chaturthi on 22 August, as auto firms pull all stops to lure the buyers back into the showrooms amid the pandemic.
The festive season has always been vital to car and two-wheeler companies and, like manufacturers of other big ticket items, this year becomes more crucial as it comes on back of pent up demand. Companies are therefore hoping to make up for the loss of volumes of the recent past within the next four months.
As companies undertake steep ramp up amid the new normal, to meet festive demand, they remain cautious. Intermittent localised lockdowns have been disrupting production
“We are operating 90-92 per cent capacity level in the current month and will ramp up further for the festive season and expect to reach the pre-Covid levels by September end,” say Ganesh Mani, director–production, Hyundai Motor India. Hyundai is running three shifts of operations at its plant.
Hyundai that has launched four new models including the new Creta and Aura this year is likely to bring the new i20 this festive season. “Expect all the newly launched models to get a big push during festivals,” said Mani without specifying on the festive season launch by the company.
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“The challenge is that every time there is an infection, as the step it takes away 20-25 people. While, progressively, we are being more scientific about the whole process, the production does get impacted,” said Naveen Soni, senior vice president—sales and service at Toyota Kirloskar Motor.
Toyota plans to launch the Urban Cruiser, re-badged Brezza during ahead of Diwali. With the Cruiser, it hopes to attract first time buyers. The compact SUV segment’s share in the SUV market has grown from 5 per cent in 2015 to 13 per cent now, he said.
Venkatram Mamillapalle, MD and CEO and Renault points out at challenges on supply chain and sourcing strategy side. “Drop in vehicle sales is leading to decline in requirement and therefore one has to make frequent changes in schedules to suppliers,” he said. Meanwhile, suppliers too are grappling with manpower movement, material availability, restricted working hours etc.
Close to 50 new models have been launched in India in the last 12 months but companies have not been able to realize the full potential of the launches due to the pandemic, says Puneet Gupta, associate director at I.H.S Markit, a sales forecasting and research firm. Of these, at least ten have the potential to be a volume spinner.
To be sure, most of the other launches are going to address the SUV segment. Kia Motors, the local arm of the Korean carmaker unveiled its compact SUV offering Sonet, last week. The model will go on sale from next week. Expected to be priced in the range of Rs7 lakh to Rs12 lakh, the Sonet competes with the Tata Nexon, Hyundai Venue, Vitara Brezza, among others.
The competition in the sub-compact is set to intensify further with the Renault Kiger. Based on the CMF-A+ platform, the Kiger will be the smallest and most affordable SUV from Renault in the country. It’s also expected to on sale around Diwali.
The new Thar from Mahindra—which is set to go on sale from 15 August and MG Gloster, a seven seater model that will compete with the Fortuner, and the new generation Duster are some other launches expected in the SUV space during this festive season.
This is the best time to launch new models,” said Gupta of I.H.S. The dual lever of pent up demand and festivals should help.” He however, added the biggest challenge is to get people to the showrooms given the fear. The current economic scenario doesn’t help either, he said.
With inputs from TE Narasimhan
