Yesteryear sales reports have spoken loud and clear about cut-throat competition between two strong carmaker brands in the country – Hyundai motors and Maruti Suzuki. This time around reports have indicated that Hyundai and Maruti Suzuki have been the most preferred brand among first time car buyers in the country. As per sales report, Maruti Suzuki's first time buyer numbers of about 39% noted in first quarter of last year have risen to about 43% in April to June period in this fiscal year.
Rakesh Srivastava, Hyundai’s Senior Vice President, Sales and Marketing, said to sources, “The entry segment is clearly seeing traction... especially those wanting to upgrade from two-wheelers to four wheelers, apart from customers wanting to exchange used cards for new entry cars. This is largely on account of stability on both interest rates and fuel prices.” Srivastava further added that Hyundai's Eon hatchback sales have risen in urban areas, whereas rural parts have seen more demand for the i10 and Santro hatchbacks.
Apart from extension of excise duty benefit and higher levels of sales promotion expenditure by Maruti Suzuki, it is also said that economic recovery has also boosted the new car sales among first-time buyers. C V Raman, Maruti Suzuki’s R&D Head and Executive Officer (Engineering), said, “The up-tick is clearly visible, especially in the entry-level performance.” Mayank Pareek, chief operating officer (marketing and sales), Maruti Suzuki, further added, “The first-time buyer is more defensive. But now, clearly, there is a distinct improvement in sentiment.”
Source: FE
