Buyers still intact? Retail car sales up 3.5% in December despite note ban

Wholesale volumes had declined 1.3% in December

More people bought cars last month as compared to a year before, despite the low consumption sentiment after currency demonetisation. Wholesale shipment of passenger vehicles (by companies to dealers) fell 1.3%. 

In contrast, retail sales are estimated to have improved by a little over three%. Which shows the companies were able to bring buyers to showrooms despite demonetisation, with offers of price hikes and steep discounts.

R C Bhargava, chairman at Maruti Suzuki, the country’s biggest in car sales, said their practice was to keep wholesale supply lower in December, so that inventory did not pile up at dealers. “Due