Premium models boost car, TV, smartphone sales during Diwali season | Bot To News

In the week leading up to Diwali this year, Indian consumers bought more premium cars, smartphones, televisions and appliances than ever before.

Cars priced ₹10 lakh and above, 5G-enabled smartphones, large-screen TVs and double-door and side-mounted refrigerators saw increased demand during Diwali, helping their growth rate and overall product sales share reach new highs. , show sales data.

According to electronics market analyst GfK, 5G phones account for 45% of total smartphone sales during Diwali. Handset priced above ₹30,000 grew at almost double the overall category growth rate, accounting for 20% of total sales by volume and a new high of over 50% in value terms, GfK data shared exclusively with ET.

Television sales tripled

Similarly, TV sales tripled during the Diwali period from the previous period and growth was led by expensive ultra-high definition models, GfK data showed.

Demand for large-screen televisions (above 43-inches) remains high, accounting for a third of sales in the category – also a new high.

Cars priced above Rs 10 lakh, midsize and premium SUVs such as Maruti Suzuki Grand Vitara, Hyundai Creta, Tata Harrier, Mahindra XUV700 recorded maximum retail sales of 375,000-385,000 units in the passenger segment this Diwali season. According to leading manufacturers.

In the luxury car market, sales have grown 40% this year and there is an order backlog of around 10,000-12,000 units after strong festive bookings, industry officials said. Overall, orders for 900,000 cars are pending, with the maximum waiting period for expensive models like the XUV700, Scorpio and Creta ranging between 6-24 months, they said.

Sure, there was a boom in entry-level electronics, hatchback cars and two-wheelers during Diwali, but it was marginal. “Consumers buying premium and super-premium (electronics priced above Rs 1 lakh) are less affected by inflation,” said Deepak Bansal, vice-president, LG India. “Also, there is a natural upsurge in consumer preference for lifestyle upgrades,” he said.

Ananth Jain, head of India market intelligence at GfK, said the industry continues to see a premiumisation trend against all odds. “This is due to hybrid working conditions, consumer preference for smart and sustainable products that offer comfort and convenience, and better last mile reach,” he said.

LG’s Bansal said brands play a key role in driving premiumization and upselling to prevent shifting consumer preference by offering lucrative consumer offerings at the high end. “It is an effort by all brands to increase value business as overall volumes are under pressure,” he said.

A senior auto industry executive said demand for small cars remains weak, with entry-level affordability affected amid rising prices. However, sales remain strong at the top end of the market where customers have higher disposable incomes and, therefore, better ability to absorb price shocks, the person said.

Prices of cars have risen by up to 15% since the outbreak of Covid-19, while consumer electronics have increased by 15-25% due to increases in metal prices, semiconductors and other components.

The share of passenger vehicles priced above Rs 10 lakh in overall car sales has increased compared to the pre-Covid period.

For instance, at market leader Maruti Suzuki, the share of cars priced above Rs 10 lakh has increased to 14% of total sales from 2.5% in FY20, while Hyundai’s contribution has more than doubled to 40%. At Tata Motors, sales of cars above Rs 10 lakh now stand at 28%.

According to Grizzly Research, cars priced above Rs 10 lakh sold five times faster than cars with sticker prices below Rs 10 lakh in the last financial year, with a year-on-year growth of 38%. As a result, the market share of premium cars increased by five percentage points from around 30% in the last financial year to 25% in the 2021 financial year. This 30% market share is the highest level of clocked premium cars in the last seven years.

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