Consumer cos cheer as GST cuts light up Navratri sales, demand highest in more than a decade

Kolkata | New Delhi: India's leading consumer goods manufacturers and retailers reaped their highest Navratri sales in more than a decade this year as reduced goods and services tax (GST) rates and product prices sparked consumer sentiment, setting the stage for a sales surge during Diwali later this month.

Sales grew in the range of 25% to 100% across brands, offering a major relief to companies and retailers after 5-6 years of sluggish demand. Car market leader Maruti Suzuki said the company's Navratri sales - which doubled from last year- were the best-ever in at least a decade.

The maker of Swift and Alto cars got 700,530 enquiries and 150,000 bookings during Navratri as of Wednesday. It expects bookings to touch 200,000 vehicles by Thursday closing. Maruti Suzuki retailed 85,000 vehicles during last year's Navratri. Mahindra & Mahindra, which sells SUV models like XUV700 and Scorpio N, said retails climbed 60% compared to last Navratri. At Hyundai, strong demand for models like Creta and Venue boosted the share of SUVs in total sales to over 72%.

In consumer electronics space, LG, Haier, and Godrej Appliances reported high double-digit sales growth this Navratri compared to last year, industry executives said. Haier's sales, for instance, soared 85% with the company almost selling out its Diwali stock of 85-inch and 100-inch televisions priced over ₹2.5 lakh, while selling 300-350 units of 65-inch televisions every day.

Additional Incentives
“The Navratri sales this year is driven by the direct benefit of GST rate cut and an indirect impact it had on improving customer sentiments,” said Satish NS, president, Haier India.

The government reduced the GST rate on many goods with effect from September 22. Companies passed on the lower tax rate to consumers with many topping it up with additional price incentives. Partho Banerjee, senior executive, marketing and sales at Maruti Suzuki, underlined growth across categories spanning small cars, SUVs, and multi-purpose vehicles. The company’s small car bookings jumped by 50% this festive season. Sales at India’s largest retailer Reliance Retail grew by 20-25% over last year's Navratri with categories like large-screen TVs, smartphones, and fashion driving the sales momentum. Electronics retail chain Vijay Sales too saw a more than 20% sales growth.

The first half of the festive season starts with Onam, followed by Durga Puja-Navratri, ending with Dussehra which was celebrated on October 2 this year. This period contributes about 40-45% of total festive sales, the largest consumption period in the country. Onam sales were lukewarm due to the GST transition phase, but business recouped during Navratri from September 22 when the revised GST rates took effect.

All eyes on second half
The second half of festive sales spans Dhanteras and Diwali in the third week of October and on to New Year.

Two-wheeler maker Hero MotoCorp said showroom footfalls have doubled this Navratri with high traction in the commuter segment. Tata Motors has retailed more than 50,000 vehicles during the festive period till Tuesday with demand from Altroz, Punch, Nexon and Tiago models. LG Electronics India sales head Sanjay Chitkara noted “exponential growth” in sales this Navratri.

While sales of TVs, ACs, and dishwashers surged amid lower prices due to the GST rate cuts, others like refrigerators, washing machines, and microwave ovens also attracted buyers. “We believe that this momentum will continue this year, after Diwali and the wedding season,” he said.

Retailers noted increased footfalls at shopping malls since the last weekend, continuing till Thursday, after some initial hiccup at the start of Navratri due to Amazon’s and Flipkart’s biggest annual sales events.