Auto, consumer electronics and daily-use products companies are gearing up for their highest single-day sales to retailers and dealers on Monday, when GST rate cuts take effect.
The strong booking orders come after a month-long slump. Sales to distributors, wholesalers and retailers had fallen up to 75–80% as trade partners held back purchases to take advantage of lower tax rates in GST 2.0 across categories — from small cars and television sets to coffee and subRs 2,500 apparel.
Companies expect strong trade orders through the week amid Navratri and pent-up demand, as consumers had postponed big-ticket purchases in anticipation of new rates.
Hyundai is expected to bill over 10,000 vehicles to dealers on Monday.
It’s a new high for a single day, an achievement even some of its smaller rivals are expected to match. “Our bookings have gone up by more than 50% in the last few days after the announcement of new rates,” said Tarun Garg, chief operating officer at Hyundai Motor India.
Venkatram Mamillapalle, managing director of Renault India, too, said the company would see one of the highest one-day wholesales in recent times.
The industry estimates total wholesale billing value for carmakers at Rs 4,500-5,000 crore on Monday.
In electronics, companies like Sony and Haier confirmed high billings. Haier said it will clock over Rs 250-crore sales on the day, with billings and dispatches starting from Sunday midnight.
TV brands such as Thomson and Kodak also see highest sales to retail stores, surpassing the earlier peak immediately after Covid lockdowns.
Fast-moving consumer goods companies such as Amul and Parle Products said primary sales (from companies to retailers) will surge significantly. Top food company Parle Products’ vice president Mayank Shah said the entire trade pipeline is dry and there should be a 25-30% surge in primary sales from Monday over the usual period.
Burst of demand
End consumer sales, too, are expected to surge significantly from Monday with many companies set to pass on the entire GST benefit to consumers and continuing with their discount schemes in the festive season.
Television manufacturer Sony India managing director Sunil Nayyar said consumer demand should surge by over 20% after being flat so far this calendar year and significantly down since the GST announcement on Independence Day. “As high consumer sales happen, it will give a boost to primary sales too,” he said.
Kunal Behl, vice-president (marketing and sales) at Honda Cars India, said bookings have grown strongly over last month and the momentum will only get better after Monday.
The categories which were most impacted in sales in the GST transition period include cars, two-wheelers, televisions, ACs and sub-Rs 2,500 apparel and footwear due to steep GST cut.
Even for daily necessities, companies expect stocking will go up for large packs and costly items.
Dairy brand Amul’s managing director Jayen Mehta said that while retailers were buying necessities like butter and cheese, there was some postponement for high value items like ghee, which will now get a boost as prices have become reasonable. “Due to increased offtake for high value items and the spike in Navratri demand, trade billings will surge,” he said.
Most companies will start billings and warehouse dispatches from Sunday midnight itself, to fill the trade pipeline.
Company heads such as Haier India president Satish NS said they are fully prepared to ensure all pre-bookings are delivered by Monday itself, with additional trucks ready and field staff in place.
The strong booking orders come after a month-long slump. Sales to distributors, wholesalers and retailers had fallen up to 75–80% as trade partners held back purchases to take advantage of lower tax rates in GST 2.0 across categories — from small cars and television sets to coffee and subRs 2,500 apparel.
Companies expect strong trade orders through the week amid Navratri and pent-up demand, as consumers had postponed big-ticket purchases in anticipation of new rates.
Hyundai is expected to bill over 10,000 vehicles to dealers on Monday.
It’s a new high for a single day, an achievement even some of its smaller rivals are expected to match. “Our bookings have gone up by more than 50% in the last few days after the announcement of new rates,” said Tarun Garg, chief operating officer at Hyundai Motor India.
Venkatram Mamillapalle, managing director of Renault India, too, said the company would see one of the highest one-day wholesales in recent times.
The industry estimates total wholesale billing value for carmakers at Rs 4,500-5,000 crore on Monday.
In electronics, companies like Sony and Haier confirmed high billings. Haier said it will clock over Rs 250-crore sales on the day, with billings and dispatches starting from Sunday midnight.
TV brands such as Thomson and Kodak also see highest sales to retail stores, surpassing the earlier peak immediately after Covid lockdowns.
Fast-moving consumer goods companies such as Amul and Parle Products said primary sales (from companies to retailers) will surge significantly. Top food company Parle Products’ vice president Mayank Shah said the entire trade pipeline is dry and there should be a 25-30% surge in primary sales from Monday over the usual period.
Burst of demand
End consumer sales, too, are expected to surge significantly from Monday with many companies set to pass on the entire GST benefit to consumers and continuing with their discount schemes in the festive season.
Television manufacturer Sony India managing director Sunil Nayyar said consumer demand should surge by over 20% after being flat so far this calendar year and significantly down since the GST announcement on Independence Day. “As high consumer sales happen, it will give a boost to primary sales too,” he said.
Kunal Behl, vice-president (marketing and sales) at Honda Cars India, said bookings have grown strongly over last month and the momentum will only get better after Monday.
The categories which were most impacted in sales in the GST transition period include cars, two-wheelers, televisions, ACs and sub-Rs 2,500 apparel and footwear due to steep GST cut.
Even for daily necessities, companies expect stocking will go up for large packs and costly items.
Dairy brand Amul’s managing director Jayen Mehta said that while retailers were buying necessities like butter and cheese, there was some postponement for high value items like ghee, which will now get a boost as prices have become reasonable. “Due to increased offtake for high value items and the spike in Navratri demand, trade billings will surge,” he said.
Most companies will start billings and warehouse dispatches from Sunday midnight itself, to fill the trade pipeline.
Company heads such as Haier India president Satish NS said they are fully prepared to ensure all pre-bookings are delivered by Monday itself, with additional trucks ready and field staff in place.
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