June might see passenger vehicle sales increasing, says study
Passenger vehicle sales volume in India is expected to witness a Month-on-Month growth in June 2021, forecasts India Ratings and Research. With manufacturing activities at the auto manufacturing plants restarted, state lockdowns being withdrawn gradually and economic activity resuming; demands for passenger vehicles are expected to grow this month.
According to the research agency, the widespread and severe business impact of the second wave of the pandemic in May this year resulted in further deterioration in sales volume of passenger vehicles.
Severe crisis during the peak of the second wave led major PV and two-wheeler manufacturers in advancing their annual maintenance shutdowns in May. They also announced plat shutdowns for nearly two weeks due to the widespread surge of Covid cases. Besides that, dampened consumer sentiment and state lockdowns were also responsible for the sales slump in May.
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Passenger vehicle sales volume slumped by 65% in May 2021 despite the lower base. Even in April this year, sales of passenger vehicles witnessed a 30% decline due to the lockdowns.
However, with the situation improved in June 2021, the study claims this month will see a revival in sales. Consumers' preference to buy a personal vehicle in an attempt to have a personal mobility medium ahead of nearing the third wave would fuel this revival. Also, several automakers are launching new models in the country after the lull in 2020. This is also generating interest among the buyers.