homeauto NewsAuto slowdown: This is the best time to buy due to steep discounts, says FADA's Vinkesh Gulati
Auto slowdown: This is the best time to buy due to steep discounts, says FADA's Vinkesh Gulati
Vinkesh Gulati, vice-president of Federation of Automobile Dealers Associations (FADA), in an interview with CNBC-TV18 said that automakers are getting more enquiries, keeping with the typical festive season trend.
The automobile sector in the country has been undergoing a prolonged downturn with all major manufacturers reporting declining sales this year. However, automakers are hoping for a change of fortunes in the ongoing festive season. Vinkesh Gulati, vice-president of Federation of Automobile Dealers Associations (FADA), in an interview with CNBC-TV18 said that automakers are getting more enquiries, keeping with the typical festive season trend.
“Normally before the festive season, sentiment goes up and the enquiries go up and it is the similar thing that has happened this year. In the passenger vehicle (PV) segment, we are seeing a good growth in enquiries and we are expecting a better conversion to happen as compared to the last six months as tepid demand was there," he said.
However, he added that the two-wheeler market still remains grim.
"In the two-wheeler segment, the situation is not similar. Overall the situation is still grim in that segment,” he added.
Gulati continued: “In the past year or so, we are seeing a degrowth of around 8-10 percent happening. For the PV segment, we are expecting the degrowth to be less maybe 1-2 percent or similar as last year. That is a better situation for us. In the two-wheeler segment we are expecting the degrade to continue which is there around 8-12 percent."
Gulati reasoned that the tepid demand for two-wheelers is a reflection of rural and semi-urban market sentiment.
“Two-wheelers is majorly based on rural and semi-urban market and that is where the sentiment has not grown well. That is affecting the two-wheeler market. The hype of festive in the rural is still not there,” said Gulati.
Automakers are offering steep discounts to lure customers and Gultai said that on the discount front this festive season is the best time to buy.
"Discounts are similar as what it was in the last month when Navratri was there. Adding to that, there have been lot of discounts being offered by the dealers on their own also to liquidate the inventories. So on the discount front, this is the best time to buy.
“If I talk about bookings, it have improved. It is similar to what it was last year. If I am able to compare the bookings with 2018, it is showing a positive thing,” he said.
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