FADA expects car sales to see an uptick during festive season
The automobile dealer's body FADA expects car sales to be on the fast lane during the festive season buoyed by the new launches and improved production but is also cautiously optimistic on the road ahead once the festivities are done with. The auto industry has been rolling out over three lakh units on an average in the past four to five months, helping in retails.
The festive season, which usually sees an uptick in automobile sales, begins on August 11 with Rakshabandhan stretching up to Diwali on October 25. “We expect the festive season this year to be the best in terms of passenger vehicle sales on the back of new launches and improved production activity," automobile dealer's body President Vinkesh Gulati told PTI. FADA represents over 15,000 automobile dealers across the country.
He also pointed out that the industry will have to look out for erratic monsoon in some parts of the country, inflationary pressures and the looming threat of a China-Taiwan war as these will be some of the challenges to watch out for in the days ahead.
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Kia India Vice President and Head of Sales & Marketing Hardeep Singh Brar said that supply chain issues are now showing signs of easing off, and market sentiments remain bullish. "We are optimistic that a good festive season is ahead of us in terms of sales," he said.
Adding to this, Tata Motors' President Passenger Vehicle and Electric Vehicles Shailesh Chandra said that the home-grown company does not see a concern regarding the customer demand until the end of the festive season. While on an analyst call, the automaker expects the vehicle supply to improve with better semiconductor availability in the second quarter.
The country's passenger vehicle sector has sold 12.53 lakh units this year as compared with 9.41 lakh units last year. At the beginning of April, the industry stock was estimated to be around 1.20 units which has now gone up to about 2.12 lakh units thanks to the fact that wholesale has been exceeding the retails.