As two-wheeler sales take a hit, ASDC’s Nikunj Sanghi expects situation to worsen

As India's COVID-19 cases continue to spike, several states have imposed fresh restrictions in order to contain the spread. According to a Motilal Oswal report, the second wave of COVID is hitting the two-wheeler sales harder and sales have declined 30-50 percent so far in April.

Discussing the ground situation at auto dealerships, Nikunj Sanghi, Chairman of Automotive Skill Development Council (ASDC) said that there has been pressure in the last 2 weeks and expects the situation to worsen as more and more states announce fresh restrictions.

“There is some inventory pile-up in two-wheeler space, but not so much in the passenger vehicle segment. Retails have practically stopped, specifically in Rajasthan. We have had a lockdown for almost a week; it started on Friday evening and will continue till May 3. The list of states is growing – from Maharashtra to Madhya Pradesh, to Jharkhand, to Delhi, and the list goes on. As it goes on, it is going to get worse,” he said in an interview with CNBC-TV18.

According to Ashish Pande, Managing Partner at Om Auto & Sons, demand will come back in a big way if the market opens in the first week of May.

“I feel that since April, May, and June is a marriage season and since last year was a lockdown, marriages in the rural area specifically did not accrue in the month of November, December, they are supposed to happen in April, May, and June. The crop has also been good and mandis are open. So farmers are upbeat and the rural sector is upbeat. Fortunately, in spite of the widespread second wave, it is largely limited to urban pockets and has not reached semi-urban and rural areas. So, my perception is that if the market were to open in the first week of May, and if the pandemic is constrained, then I see good May, June and I foresee a sale of 60 percent of 2019,” he said.