The recent shifts in the two-wheeler market have left dealers in a state of anticipation – all eyes are on the post-festive season. The downturn began following an August 15 announcement of the GST reductions for two-wheeler dealers. Consequently, bookings have plummeted, practically disappearing completely by September 4, when the GST Council validated the cuts.
Nationwide, dealers report that bookings have nosedived—showing a nearly 50% decrease within the past month when compared to the same time frame the preceding year. There is a rising concern among dealers regarding the persisting impacts of this downturn and the accumulation of inventory since the GST cut’s announcement on August 15.
The announcement of a GST reduction by the Prime Minister on August 15 resulted in a bleak sales landscape with zero sales following the affirmation of the cuts by the GST Council on September 4. Now, dealers find themselves ripe with anticipation, predicting a surge of sales after the festivities commencing on September 22.
However, this lull in sales might just be the new trajectory, given customers are aware this cut in GST is a permanent change, not a one-time offer. As a result, there is an apparent trend of prospective buyers choosing to hold off on their purchases, opting to wait for a later opportunity to acquire their two-wheeler.
Moving forward, it is a case of ‘wait and watch’ for the dealers, especially in anticipation of the outcomes post the festive season. Amidst these challenging times, a glimmer of hope exists. The two-wheeler industry is forecasted to experience a growth surge of 10-12% this celebratory season.
During the period from April to August this year, the two-wheeler market displayed dismal growth, hovering just below 1%. Yet, as celebrations loom on the horizon, the expectation is that the festive energy will stimulate market growth by about 10-12%.
Despite this, the dealers’ concerns extend beyond market growth. They fret over the stock they’ve amassed since August 15. These products have already had their cess paid, yet there has been no clarification from the governmental side regarding whether these sums will be refunded.
Showrooms continue to see a steady flow of guests; however, these interactions rarely materialize into sales. The grand festive season beginning on September 22 with Navaratri stirs customers’ expectations of further discount announcements. Hence, these exploratory showroom visits often end up limited to inquiries rather than leading to purchases.
Customers’ hesitation to finalize bookings is palpable. The prevailing uncertainty surrounding the final pricing fuels their reluctance. Quite understandably, they find the present situation too tentative and choose to pause any further commitment until the final prices are revealed.
In conclusion, the two-wheeler market is in something of a flux following the August 15 announcement of GST reductions. With dealers holding their breath in the wake of dwindling bookings, rekindled sales post the festive season are the only solace.
One thing is clear; this phenomenon is not simply a scheme that customers rush to capitalize on before it expires. With customers exercising patience, it appears a new trend is emerging in the market – a trend governed by increased awareness and strategic decision-making prompted by the permanence of the GST reduction.
The post Two-Wheeler Dealers Brace for Post-Festive Season Following GST Cut appeared first on Real News Now.
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