The 42-day festive period saw good traction in the pandemic-hit world as overall degrowth of -4.74% was much less than expected, according to Federation of Automobile
Dealers Associations (FADA) President, Vinkesh Gulati.
"While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras – Diwali period. The tractor segment continued to gallop ahead. The fear of the pandemic leading to safer means of travel for the entire family saw good sales inpPassenger vehicles as it grew in double digits at 13.6%," he said.
Small goods commercial vehicles (SGCV) continued to see good demand with increased level of transportation and last mile connectivity needs. With safer means of travel in the customer's mind and schools and colleges continuing to remain closed, demand for buses remains weak. Similarly, the M&HCV segment continues to play spoilsport with excessive capacity, high prices of BS-6 models, finance issues and higher fuel prices.
Speaking on the outlook, Gulati said, with the festive season now over and heavy rains in some parts of the country leading to crop damage, the pent-up demand is almost negligible and demand revival now solely depends on exciting year end schemes.
"If the supply chain issues in the PV segment are controlled, we may see continued growth in December," said Gulati, adding that FADA once again cautions two-wheeler OEMs and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued. Average inventory for PVs ranges from 25 – 30 days and for two-Wheelers it ranges from 45 – 50 days.
FADA also urged the government to increase infrastructure spending including timely payment to vendors and introduce attractive incentive-based scrappage policy to revive the M&HCV segment.