Auto industry in recovery mode, buoyed by demand for passenger vehicles: FADA
The Federation of Automobile Dealers Associations (FADA) on Thursday released vehicle retail data for the month of June and the figures confirmed that after the troubled times of April and May owing to Covid-induced restrictions, the Indian automotive industry is firmly back in recovery mode.
FADA pointed that while all categories in the automobile industry here were in the green, the demand for passenger vehicles is the one to especially make note of. Crediting demand arising out of need for personal mobility in times of social distancing, PV retail in June rose by 43.45% as compared to figures from the same month in 2020 and 27.66% from June in 2019. "The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent up demand which was stuck in the system because of statewide lockdowns," said Vinkesh Gulati, President at FADA.
The two-wheeler segment, although strong, showcased a softer revival and FADA states it could be due to a more gradual recovery demand from rural markets emerging from Covid stress. It is important to note here that while rural India had largely steered clear from Covid in the first wave in 2020, the pandemic had reached the heartlands earlier this year.
Other segments like three wheelers and commercial vehicles too have been emerging stronger.
FADA, however, does warn that the danger may not be over yet. "Positive momentum from June carry forwards to July. With southern India opening up, we can expect further pickup in demand. On a longer term, the auto industry is yet to see retail numbers comparable to FY 19," an official FADA statement reads.
There is also hope that the festive months up ahead could further bolster sales even if the omnipresent threat of a third Covid wave remains as valid as ever.