Auto dealers’ body expects array of vehicle launches ahead of festival season

After two years of a pandemic and relatively lukewarm demand, car dealership organization FADA said it expects automakers to launch a larger number of models this festive season. Federation of Automobile Dealers’ Association (FADA) president Vinkesh Gulati called the 2021 holiday season the “worst” in a decade in terms of business for its retail partners.

“If I compare it to the past two years, you’ll see at least double the model launch during the holidays. Plus, we’re seeing a lot of electric vehicles being launched as well, so you’re going to find a lot of launches (in anticipation of the holidays),” he said. Gulati to PTI.

In an interaction with PTI, Gulati said demand is “too good” this time around, except for the non-electric two-wheeler segment, which remains the “greatest stress” for the industry due to a host of factors.

However, most new vehicles are expected to be in the compact SUV or SUV segment, he said, stressing that “90 percent of launches (will) be driven towards the SUV segment.”

Gulati called the next 4-5 months the best for car sales as the holiday season in the country falls during this period.

“We see good visitors and inquiries from the dealers. Undoubtedly there are problems such as high waiting time in the auto segment, which is a deterrent for the customer. But despite a long wait, customers still support the dealers,” he said. .

“Overall, the auto segment is doing very well and we have very good visitor numbers. We have a very large order book ranging from over 7.5 lakh cars in the system. And people are still booking. As things go I think not this number will fall for at least a year,” Gulati said.

According to him, the automakers in the country have been producing 3 lakh cars per month since February, which is a good sign.

The auto segment looks good for the next five months and could go above 3 lakh plus, given the numbers that the companies like M&M,

“Hyundai and Kia predict that is cumulatively around 3.50 lakh per month, he said.

“But even if they do 3 lakh, they will be beyond the past year,” said Gulati.

On commercial vehicle (CV) demand, he said sales in that segment are positive, but still not compared to the front-axle load standard period.

CV demand started to decline from November 2018 due to the introduction of axle load standards and other factors.

Company cars must be green. Besides, the kind of “infrastructure support we get from government infrastructure push” is also pushing the segment on the upside, he added.

According to Gulati, increasing electrification in the tricycle space is a “positive” for the segment.

“The demand for e-tricycles will continue to grow and many companies will come out with more and more products. It will be positive. But on the other hand, the negative aspect is that the sales of ICE or CNG tricycles are decreasing and steady, ” he said.

He said the tractor segment is already positive and the monsoon has supported demand.

The demand for electric tricycles is growing and is so high that it is trying to cover the degrowth of the non-electric segment. But it is not so in the case of two-wheelers, where the degrowth is 25 percent plus compared to the per-Covid level and despite the growth of electric two-wheelers, it will not be able to cover up.

“The demand for non-electric two-wheelers is the biggest stress. And this is the concern for FADA,” said Gulati, citing a number of reasons over the past two years, including the transition from BSIV to BSVI, which boosted two-wheelers. prices by as much as 30 percent, higher fuel prices and “growing intervention” from the ministry of roat transport regarding safety features and other standards.

“There is also a structural shift on the part of the customer, such as customer preference and expectations. The kind of stress that we have seen in rural areas due to the pandemic is also a big problem,” he said.

(with PTI inputs)

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