The Indian automobile industry is right on top when we look at the sectors affected by the Coronavirus pandemic. A nationwide lockdown that has now lasted for almost 2 months has ensured that negligible number of new vehicles were sold in this period. But according to a survey conducted by carandbike on the impact of the pandemic on the auto sector, that is set to change. The study reveals that going forward people will be wary of using various forms of public transport owing to hygiene and social distancing issues. This means there could be a huge shift towards more people looking their own their personal set of wheels.
Respondents included more than 1,000 customers and 100+ dealers of new and used cars.
India has one of the lowest car penetration rates anywhere in the world with just 23 cars per 1,000 people. According to the survey we might see a V-shaped recovery like China when the lockdown opens, with pent-up demand and first time-buyers driving the industry. It further says, commute by a private car is likely to increase by 15 per cent in times to come and those planning to buy a car belong to households with a monthly income range from ₹ 60,000 to ₹ 1,20,000 a month. In contrast, the survey reveals usage of everything else will go down which includes 2-weelers, cabs, buses and metros. The survey also says those aged above 35 showed a higher inclination of using a private car post lockdown.
One big beneficiary of this trend could be the used car segment, more so because many consumers who would look to shift towards personal mobility will not be able to afford new cars. In that too certified pre-owned car businesses run by Indian OEM's could attract more buyers as they guarantee pace of mind.
According to Tarun Garg, Director, Sales, Marketing & Service, Hyundai Motor India Ltd, "The used car business might see an upswing in sales because preference for personal transport may increase due to health and hygiene issues. Social Distancing will also encourage customers to explore budgeted options for cars without compromising on quality. Here, certified pre-owned cars bundled with warranty and RSA will offer complete peace of mind to the customer."
This carandbike survey was conducted in the month of April and respondents included more than 1,000 customers and 100+ dealers of new and used cars. In all 9 cities were covered including Delhi, Mumbai, Bengaluru, Chennai, Pune, Kolkata, Hyderabad, Jaipur and Indore.