INDIA REPORT
Adequate rainfall across the country along with the start of the long festive season will keep the demand for automobiles positive and help keep the momentum going in this segment. Additionally, normal monsoons in most parts of the country resulting in a decent agricultural harvest kept demand positive. So, automakers are focusing on building up inventory in anticipation of higher demand
The Indian economy is poised to shrug off the modest tapering of growth in Q1 2022, and aggregate demand is firm and set to expand as the festival season sets in. Hatchback cars and affordable, non-electric motorcycles and scooters are set to register bumper sales in the coming months as India gets ready to celebrate its first ‘normal’ festive season after a gap of two years. Above-normal rains, positive consumer sentiment and a generally optimistic mood are also expected to boost sales of these entry-level vehicles.
While carmakers line up new products for launch during the season, banks are working on offers and incentives to attract customers as they see a surge in demand for retail loans.
“We expect the festive season this year to be the best in terms of passenger vehicle sales on the back of new launches and improved production activity,” says Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA). The industry has been rolling out over 3 lakh units on an average in the past 4-5 months which is helping in retails.” PSR
Source: Economic Times Read The Article
Source: Motor News Today Read The Article
Aditya Kondejkar is Research Analyst – South Asia Operations, for Power Systems Research
