The second wave’s impact on auto sales: Major players see decline in monthly sales

A personal vehicle, it is argued, is usually a discretionary purchase—it’s a ‘want’, not a ‘need’. Consumers delay such purchases if the general sentiment is weak. “Indian consumers, even during a normal economy, can delay vehicle purchases for months, waiting for discounts,” said Gaurav Vangaal, associate director, IHS Markit. “These are anyway extraordinary times.”

In April 2021, hit by the Covid-19 second wave, wholesale despatches of automobiles have gotten impacted, with most automakers reporting a decline compared to March (sales growth cannot be compared year-on-year because a nationwide lockdown was in effect in April 2020). According to yesterday’s report in FE, while companies say the demand for vehicles remains strong, they foresee challenges to supply chain, dealership activity and customer movement in the coming months, given the localised restrictions imposed by states in the wake of the second wave.

The full article was originally published on Financial Express