Post second wave 2-wheeler, CV demand in slow lane but PV shifts gears: FADA
The passenger vehicle demand is still good, supported by the need of personal mobility due to fear of COVID-19 and plus there is already a waiting period, which was there even prior to the second lockdown. However, other categories face stress, said Vinkesh Gulati, President, FADA.
Retail vehicle sales have shown recovery in June on a year-on-year basis. They are up 22.6 percent but on a low base, so the recovery has to be seen in that light.
Speaking about the recovery in demand, the outlook and dealership outlets, Vinkesh Gulati, President of The Federation of Automobile Dealers Associations (FADA), shared with CNBC-TV18 that out of the 26,500 dealership outlets, over 90 percent are open. Only some of the southern states are closed but are expected to open soon, he said.
With regards to the demand on ground, he said, “The passenger vehicle demand is still good, supported by the need of personal mobility due to fear of COVID-19 and plus there is already a waiting period, which was there even prior to the second lockdown.” However, other categories face stress, he said.
On the commercial vehicle (CV) segment, Gulati said, along with the lockdown last year the segment entered the phase of BS-IV to BS-VI transition when production was not there. Then the economy was hit badly. The freight movement too is not normal yet. “So, CV is a challenge but year on year it will improve because inventory wasn’t there and last year, the customers who wanted could not buy. However, don’t see the segment come back on track at least for a year or two,” said Gulati.
Overall, demand for passenger vehicles is not an issue, two-wheeler is still a challenge, specified Gulati.
For the full interview, watch the video
(Edited by : Dipika Ghosh)
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