Rath yatra vehicle sales dip 2.2% in Ahmedabad

Time of India

4 hours ago

Ahmedabad: Unlike last year's euphoric surge in total vehicle sales, this rath yatra brought only a modest uptick in vehicle deliveries, with auto dealers across Ahmedabad reporting slightly lower sales compared to last year.
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According to estimates by the Federation of Automobile Dealers' Association (Fada) Gujarat, around 6,550 two- and four-wheeler deliveries took place on Friday, marking a marginal 2.2% decline compared to last year.
Vehicle deliveries this year are expected to include approximately 5,500 two-wheelers and 1,050 passenger vehicles. While two-wheeler sales remained stable and on par with last year's rath yatra numbers, the passenger car segment saw a further dip.
Deliveries of passenger vehicles were down 12.5% compared to 2024, when 1,200 units were retailed on the festive day.
"The stock availability is good and dealer inventory levels are high. Many dealers could also accept spot bookings on select models. However, demand has slowed. In Ahmedabad, various factors including the monsoon onset and stock market volatility have kept buyers cautious. Sales momentum is low, and overall sentiment remains subdued, but the numbers are good and we expect the market to recover in the coming months," said Pranav Shah, chairman, Fada Gujarat.
Automobile industry stakeholders attributed the flat trend to a mix of economic and seasonal factors. Even though the sentiment is low, dealerships saw a good recovery from the slow period, with some witnessing good demand over the past 10 days across segments.
Jigar Vyas, CEO of a car dealership in the city, said, "Demand is steady for all the segments including entry-level cars, SUVs, utility vehicles as well as premium cars.
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SUV is certainly the flavour of the season, including compact and mid-segment. MPVs are also picking up well."
"For the automobile industry, the inventory pile-up is a major issue over the past few months due to muted demand. However, the rath yatra muhurat did help bring this down substantially for various dealers, which will give them ease in terms of overhead costs as inventory holding cost and interest rates would be lesser," Vyas further explained.
Despite the slowdown, rath yatra remains a key muhurat for vehicle purchases, with dealerships continuing to roll out festive offers. Estimates by dealers suggest discounts on cars range from Rs 20,000 to Rs 1 lakh, depending on the make and model, while two-wheeler dealers are offering festive schemes worth Rs 5,000-Rs 10,000.
Ahmedabad traditionally contributes to nearly 50% of all rath yatra day vehicle sales across Gujarat, making the festival a crucial benchmark for retail trends in the automotive market. However, with demand dipping slightly this year, dealers hope for improved momentum in the coming months.