Page 26 - Forbes - India (January 2020)

Pre-Budget S P ecial

Slow Burn

Growth numbers are likely to stabilise in the next few quarters,
but there are no signs of a sharp uptick yet

By Samar SrivaStava

he retail sales numbers for October when customers prefer to While it is still early days,
December pleasantly surprised buy because of the festive season. Maruti’s numbers, which usually
Maruti Suzuki. At 212,000 units, In fact, there are indications act as a bellwether for the auto
it was the highest monthly that Maruti was caught off guard sector, could point to a stabilising of
T number in the company’s with the increase in demand. consumer demand. Slowing growth
history. “I can’t comment on future Inventory levels at dealers are down numbers and consumer loans that
months, but for December, at least, to nine days from the usual 30. were harder to come by had dented
it indicated an improvement in “We’ll have to restock aggressively sales for 11 months in a row in
demand,” says RC Bhargava, chairman in January,” says Bhargava, 2019. The increase, which may be
of the country’s largest carmaker. referring to what economists the result of pent-up demand and
He also pointed to swift sales in term as the bullwhip effect. an anticipated rise in prices due

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chaitanya dinesh surpur

forbes india • january 31, 2020