Dealers expect modest growth in vehicle demand during Dussehra-Diwali

Mumbai, Ta. 29 September 2020, Tuesday

Auto dealers expect the demand for vehicles to remain stable or grow modestly during the upcoming Dussehra-Diwali festivities. The country's auto dealers are suffering a double whammy due to macroeconomic challenges and the impact of Corona.

Auto dealers across the country are facing bad times. Dealers have been the hardest hit in the entire automotive chain, according to a statement from ICRA.

In the first quarter of the current financial year, the auto sub-segments saw a decline of 5 to 20 per cent and the wholesale shipments of vehicles are improving.

September saw an annual increase in the wholesale volume of two-wheelers and landing vehicles.

Although retail demand is still weak, dealers do not rule out the possibility of stockpiling. Dealers surveyed expect the demand for vehicles, especially two-wheelers, landing vehicles and commercial vehicles, to remain stable or moderate during the coming festive season, the report said.

No dealer expects growth above 10 per cent. Demand for commercial vehicles is under pressure while optimism for recovery is being seen in the declining vehicle.

In the time of Kovid-12, the sales volume is getting higher as inquiries are coming from the customers who really want to buy the vehicle. Auto loans are becoming a major concern as lenders are reluctant to release loans.