To recover from the shock caused by the Corona epidemic and lockdown, auto companies have planned a comeback. In view of the upcoming festive season, companies are going to launch several compact SUVs with strong features priced from Rs 6.6 lakh to Rs 11 lakh in September.
Vehicle experts say that due to social distancing, the number of new car buyers has increased rapidly in the last two months. At the same time, the demand for sub-4-meter compact SUVs is increasing rapidly in the Indian market instead of full-size SUVs. Keeping this in mind, automakers are also launching their vehicles in these segments. Kiya Motors India, Nissan and Toyota are going to launch their compact SUV in this festive season. Kiya will launch its compact SUV Sonnet next month. The car is offered with three engine options, 1.2-liter petrol, 1.0-liter turbo-GDi petrol and 1.5-liter diesel. It is expected to be priced between Rs 6.6 lakh and Rs 13 lakh (ex-showroom). Nissan’s compact SUV Magnite will be launched in this category. The company will offer a 1.0-liter turbocharged, inline 3 petrol engine. This engine will be capable of generating 100 PS of power and 160 Nm of peak torque. The third compact SUV is launching the Toyota Kirloskar Motor. Toyota is launching the first compact SUV by the name of Urban Cruiser. The Urban Cruiser will be powered by a 1.5-liter petrol engine that produces 105 PS of peak power and a maximum torque of 138 Nm. Talking about the price, the price of this car can start from Rs 8 lakh.
Two-wheeler will also come in the market
Many two-wheeler makers are also launching new models with the expectation of increasing sales in the festive season. Many companies including Hero, Honda, Bajaj, Royal Enfield are going to launch new bikes. Honda currently lacks entry-level bikes. Honda is trying to hold on to the rural market by bringing its most affordable motorcycle, CD110, at a lower price. Royal Enfield’s new bike Metor 350 may be launched in India soon.
Reducing GST will help
Finance Minister Nirmala Sitharaman had recently indicated that a GST rate of 28 per cent could be reduced on a two-wheeler. In such a situation, it is being speculated that the GST rate on two-wheelers will be reduced in the next GST Council meeting. Experts say that the Central Government will reduce the price of the bike by Rs 10,000 by reducing the GST rate on two-wheelers from 28 percent to 18 percent. This will help in increasing the sales of two-wheelers.
Double digit sales expected to grow
The passenger vehicle is expected to return to the booming trajectory in August after falling sales in the last few months. Analysts at Nomura Research and Motilal Oswal Financial Services Ltd say that passenger vehicle sales are expected to increase by double digits. Two-wheeler sales are expected to reach levels almost a year ago. Tractors are expected to maintain their strength. This boom is expected to increase further in the festive season.
Most demand for entry level vehicles
Social distancing and limited availability of public transport served to increase vehicle sales. The highest demand for this is for entry level model trains. Its sales have registered a growth of around 40 per cent. Hero MotoCorp and Maruti Suzuki have a wide presence and large share of low-priced products (entry level). Hence, sales of these two companies are expected to grow the most.
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