The Fear Of New COVID ‘Omicron’ Variant Will Further Impact The Overall Vehicle Demand - FADA
The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for November’21. The retail figures for the Indian festive month of November provide the real picture of the impact of multiple shortages plaguing the Indian Auto Industry.
Vinkesh Gulati, President FADA said, “Auto retail for the month of November continued to remain in the negative zone despite Diwali as well as marriage season in the same month. The unwanted rains in southern states further spoiled the party. Unless Rural India starts showing signs of strength, overall retails will continue to remain weak."
The 2Wheeler segment already impacted by the closure of offices and education institutes registers degrowth of 0.75% when compared to last festive season but when compared to Pre-COVID November 2019 data, FADA reports degrowth of 20.29%.
"While the 2W segment saw almost at par sales compared to last year (which itself was a bad year), overall sentiment remained low as marriage season also didn’t help in revival except in one or two states. Further, there are no signs of an increase in inquiry levels which is a bigger cause of concern." Gulati Stated.
The passenger vehicle segment faced the worst this festive season with a slump of 19.44%, compared to last year and a 14.02% drop in retail when compared to 2019. 3Wheelers segment has picked up the pace with 66.85% growth seen during the festive month but when compared to November 2019 the segment is still 41.36 behind.
"PV continues to face the brunt of semi-conductor shortage. While the new launches are keeping customer’s interest high, it is only the lack of supply which is not allowing sales to conclude. The extended waiting period is now starting to make customers jittery and this may lead to loss of interest in vehicle buying" added Gulati
While hoping the chip shortage will ease in times to come and therefore reduce waiting period of vehicles and help in increasing sales. FADA remains cautious in its near term outlook, The new variant of Covid ‘Omicron’ has once again gripped the entire nation in fear. This will further impact the overall vehicle demand. Educational Institutions and offices which were planning to reopen fully have once again deferred their plans and are allowing work/study from home. Price rise due to high input costs and high fuel costs are continuing to add customers woes. said FADA in a statement
