The association for auto dealers, FADA, predicted that this holiday season, as opposed to the previous two, when the Covid-19 outbreak clouded the holiday spirit, more new models will be introduced by automakers.
Vinkesh Gulati, head of the Federation of Automobile Dealers’ Association (FADA), described the holiday season of 2021 as the “worst” in a decade in terms of sales for its retail partners.
The non-electric two-wheeler segment, which continues to be the “greatest burden” on the industry due to a variety of causes, is the only market where demand is “too good,” according to Gulati in an interview with PTI.
In comparison to the previous two years, there would be at least twice that many model launches throughout the holiday season. Additionally, we are witnessing the advent of numerous electric automobiles. There will therefore be several launches (before to the holiday season), “said Gulati to PTI.
He emphasised that “90% of the launches (will be) directed towards the SUV class,” while most new vehicle releases are anticipated to be in the small SUV or SUV segment.
Because the country’s holiday season falls during this time, Gulati referred to the next 4-5 months as the best for automobile sales.
We have a lot of queries and customers at the dealerships. Undoubtedly, there are problems like a long waiting time in the auto industry that put off potential customers. Nevertheless, despite the lengthy wait time, clients continue to support the dealerships “added he.
He claims that since February, the nation’s automakers have been churning out 3 lakh vehicles per month, which is encouraging.
On the strength of the statistics that businesses like M&M, Tata Motors, Maruti Suzuki, Hyundai & Kia are expecting, which is cumulatively around 3.50 lakh per month, the car segment is looking excellent for the coming five months and can move above 3 lakh-plus, he said.
Gulati remarked, “But even if they do 3 lakh, they will be too over the previous year.”
Regarding the need for commercial vehicles (CVs), he stated that although sales in that market are increasing, they are still below pre-axle load norms.
Due to the implementation of axle-load regulations and other factors, the market for CVs began to decline in November 2018.
Green should be used for commercial vehicles. Additionally, he continued, the segment is being helped positively by the “infrastructure support we are getting from the infrastructure push of the government.”
Gulati considers the growing electrification of three-wheelers to be “good” for the market.
It will be advantageous. However, the sales of ICE or CNG three-wheelers are declining and steadily, which is a bad aspect “added he.
He said that the tractor market is already in the black and that the rain has helped to sustain demand.
The demand for electric three-wheelers is rising and is now so great that it is attempting to offset the decline in the no-electric category. However, this is not the case with two-wheelers, where the degrowth is 25% or more below the per-Covid level and would not be covered by the increase in electric two-wheelers.
The greatest demand is for non-electric two-wheelers. Gulati noted the shift from BSIV to BSVI, which raises the price of two-wheelers by a whopping 30%, rising gasoline prices, and “increasing involvement from the roat transport ministry over safety features and other regulations” as some of the reasons for FADA’s concern during the past two years.
“Manufacture change has also occur on the client side, including revisions to preferences and expectations. Another severe issue is the stress caused by the pandemic in rural areas “he added