Automobile Dealers Expect Rise in Sales in 6 Months: Study

A majority of automobile dealers in India are optimistic about increase in their sales volumes in the next six months though a large number of them felt that the current economic scenario had a negative impact on the market, according to a study.

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As per Sewells Group Automotive Dealer Confidence Index for the January-March 2014 quarter, overall 62 per cent dealers surveyed expected volumes to increase over the next six months, with 16 per cent dealers feeling that volumes will 'definitely increase' suggesting optimism about their expected sales volumes.

Interestingly, when compared to dealer sentiment about expected performance of their dealership over the next six months, the inference is that dealers are slightly more optimistic about sales volumes increasing in the next six months than they are about overall improvement in dealership performance, it added.

"This observation holds true for passenger car and two-wheeler dealers. Commercial vehicle dealers seem to be slightly more optimistic about dealership business improving over the next six months, than they are about improvement in sales volumes," the report said.

According to the story, 50 per cent of the dealers feel that their profit in the next six months is going to be higher or same.

On the impact of the current economic scenario, the report said a large majority of dealers perceive that it has a negative impact on the market.

"A mere 15 per cent (of) dealers believe that the current state has a positive impact on the market. The passenger car dealers are the most pessimistic with 99 per cent dealers feeling that the economic scenario has a negative impact on the market," it said.

Amongst all the segments, the two-wheeler dealers are the most optimistic with 38 per cent of the dealers surveyed feeling that the current economic scenario has a positive impact on the market and 5 per cent of commercial vehicle dealers feeling similarly, while among car dealers it was just a mere 1 per cent.

Sewells Group Automotive Dealer Confidence Index was based on responses of 215 dealers in India across 24 brands.

The Sewells Group is a global consulting and outsourcing firm which specialises in the automotive retail industry.