FADA expects automakers to launch more models this festive season
Federation of Automobile Dealers' Association (FADA) has expressed confidence that automakers will launch more number of models in the country this festive season as compared to the last two years when the coronavirus pandemic had overshadowed the festive cheer in the country. Last year, the auto body's President Vinkesh Gulati had termed 2021 festive season as the "worst" in a decade in terms of business of its retail partners.
However, this year, Gulati believes that the industry will do better. He told PTI that this time the demand is "too good", except for the non-electric two-wheeler segment which remains the "biggest stress" on the industry due to a number of factors. "If I compare with the last two years, you will find at least double the model launch during the festive season," he told PTI.
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He added that most vehicle launches are expected to happen in the compact SUV or SUV segment. He also termed the coming few months as the best for the vehicle sales as the festive season in the country falls during this period. He added that dealerships have been witnessing good footfalls and enquiries.
Addressing the issue of high waiting period of cars, he said, “Customers are still supporting the dealerships despite a long waiting period." The current orderbook at dealerships range over 7.5 lakh cars in the system. "And people are still booking. The way things are going, I don't think this number is going to come down at least for a year," Gulati said.
He further said that the passenger car segment is looking good for the coming five month and can go above three-lakh-plus on the back of the numbers that the companies such as Mahindra, Maruti, Tata Motors and Hyundai are forecasting, which is cumulatively around 3.50 lakh per month, Gulati said.
(with inputs from PTI)