Festive rush: Auto industry expects 25% growth, while restaurants buzz with diners

With the festive season in full swing, both the automobile and hospitality industries are gearing up for what is expected to be a period of booming demand. After a challenging few months, experts are optimistic that the upcoming weeks will bring substantial growth across key sectors.

From the auto industry, where sales are projected to rise significantly, to the hospitality scene, which is witnessing increased footfall in major cities, the festive spirit is translating into a much-needed boost in consumption.

On CNBC-TV18’s Festive Sentimeter show, Sai Giridhar, Vice President of the Federation of Automobile Dealers Associations (FADA), shared his outlook on the automotive sector. He noted that the initial eight days of Navratri have already shown an encouraging trend, with sales increasing across all segments.

“We are expecting approximately 20% to 25% growth over last year,” he remarked. In 2022, the festive period saw around 3.9 million vehicles sold, a 19% increase over the previous year. Giridhar highlighted that this year, unlike 2023, when supply issues hampered sales, dealers are well-stocked.
“We are flooded with stock, with ₹80,000 crore worth of vehicles, around 800,000 units, available across India,” he said. This surplus has led to steep discounts, making it a favourable time for buyers, with immediate delivery on offer.

According to Giridhar, the combination of pent-up demand, driven by weather-related disruptions over the past few months, and an abundance of stock has created ideal conditions for auto sales. He also pointed out that discounts are now comparable to those offered in 2020 as dealerships seek to clear their inventory.

In the hospitality sector, Anurag Katriar, Founder of Indigo Hospitality and Trustee of the National Restaurant Association of India (NRAI), painted a similar picture of optimism, particularly in Kolkata. “The city is bustling,” Katriar said, describing restaurants packed with customers and streets alive with festive celebrations.

He emphasised that this surge, which began with Durga Puja, is expected to last through to New Year’s Eve and beyond.

While Kolkata leads the festive dining boom with an estimated 30-40% growth, Katriar noted that consumption is rising across India, although the intensity varies from region to region. Tier II and III cities, in particular, are showing stronger growth in percentage terms, signalling a shift in spending patterns.

“India was consuming, but now Bharat is consuming,” he observed, reflecting on the increased participation of smaller cities in the festive economy.