THE auto industry expects car sales to be on the fast lane this festive season on the back of new launches and improved production but is cautiously optimistic on the road ahead once the festivities peter out. The festive season, which usually witnesses a spike in automobile sales, begins this year on August 11 with Rakshabandhan stretching up to Diwali on October 25.

“We expect the festive season this year to be the best in terms of passenger vehicle sales on the back of new launches and improved production activity. The industry has been rolling out over 3 lakh units on an average in the past 4-5 months which is helping in retails,” automobile dealer’s body FADA President Vinkesh Gulati told PTI in an interaction. He listed erratic monsoon in some parts of the country, inflationary pressures and the looming threat of a China-Taiwan war as some of the challenges to watch out for in the days ahead.

The Federation of Automobile Dealers Associations (FADA) represents over 15,000 automobile dealers across the country.

Kia India Vice President and Head of Sales and Marketing Hardeep Singh Brar said that supply chain issues are now showing signs of easing off, and market sentiments remain bullish.

“We are optimistic that a good festive season is ahead of us in terms of sales,” he added. Tata Motors President Passenger Vehicle and Electric Vehicles Shailesh Chandra said, the company does not see a concern regarding the customer demand until the end of the festive season.