Auto sales have started showing signs of recovery ahead of the festive season which is one of the biggest silver linings for the entire auto sector this year. After witnessing a sales decline for four months owing to the coronavirus pandemic, passenger vehicle (PV) sales have recorded a double-digit growth last month at 14.16 per cent selling 2,15,916 units as compared to 1,89,129 units sold a year ago. The growth is also giving hopes to automakers and stakeholders of positive sales during the upcoming festive season period.
Also Read: Auto Sales August 2020: Car Sales Back On The Growth Trajectory As Lockdown Eases Off
FADA is expecting retail sales to gradually improve.
The Federation of Automobile Dealers Association (FADA) is expecting retail sales to gradually improve this festive season while it would likely get on the fast track in the next financial year. "We are expecting the festive season to be good this year. We are able to stand on our feats now and at least it will be a slow walk initially in the festive season. The next financial year will likely bring us back on the growth trajectory," said Vinkesh Gulati, President- FADA on the latest Freewheeling With SVP webisode while speaking with Siddharth Vinayak Patankar, Editor-in-Chief- carandbike.
Festive season discounts are expected to boost sales.
Gulati also mentioned that sales of entry-level and compact vehicles along with used cars went up last month as the industry is witnessing a grown preference for personal mobility. The pent-up demand is also adding to the overall sales after easing off of the lockdown and that's likely to grow once automakers start rolling out the festive season offers. Improving customer sentiments and adequate availability of liquidity and loans in the market is also helping to improve customer sentiments. Having said that, the growth in August is also partially attributed to the low base last year and in general sales were below expectations in the festive season in 2019. The industry is expected to return to 2018 growth levels only in the next financial year while some stakeholders say that it may take around 4-5 years to get back to a long and sustainable growth period.
