Five power-packed factors propelling Indian auto sector this festive season
It is a good time to be in the Indian automotive space, one that has had to wade through choppy waters since 2019 and all through the Covid-19 years of 2020 and 2021. While the pandemic has not exactly vanished entirely, the missing positive sentiments have returned and how. Festive period in the country usually sees the Indian automotive sector doing brisk business but the ongoing period may well be one of its best in a long time.
If sales trends from second half of September is anything to go by, October may well be a blockbuster year for the Indian automotive sector cutting across all segments. The passenger vehicle segment in particular is poised to take centerstage with a slew of new and updated model launches bringing in potential customers by the droves. But industry experts predict a growing momentum in the two-wheeler and commercial vehicle segments as well.
Here are five factors that are adding wind to the sails of the Indian automotive sector this festive season:
Pandemic on the decline
Covid pandemic ravaged many sectors through the course of 2020 and 2021 and the global automotive sector was just one of many. With lockdowns and a slew of restrictions, the Indian automotive market was hardly immune either. But the pandemic has since lost its tooth and many are regarding it as an endemic which means a far slower rate of spread than a pandemic. Obviously then, this has had a multi-pronged positive impact with demand and production now reaching normal levels.
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Semiconductor chip issue easing off
The massive shortage in semiconductor chip hurt production and supply lines like never before. The automotive industry at large took a massive hit but the shortage is now easing. Many manufacturers are reporting increased levels of production which means delivery timelines are poised to come down.
New model launches
Almost every single manufacturer had to revisit launch timelines during the pandemic which meant that there was a backlog. And 2021 came much like a pressure tap opened. And with new launches, there is always an impetus to demand as well.
Demand for two and four-wheelers has been steadily increasing in the Indian car market. While pandemic period saw pre-owned vehicle segment doing great business, the focus is now back on a shiny new set of wheels. The sentiments in urban as well as rural sections is largely positive which is a clear indication that sales figures this October could be massive shot in the arm.
The luxury car market is been going from strength to strength in India in recent times. But even in the mass-market segment, SUVs are faring stronger than every other segment. Aspirational value is playing a large part in getting buyers towards not just cars but high-end bikes as well.