Honda, Hyundai expect demand for cars to remain strong this festive season
Leading Indian car companies Hyundai and Honda Cars expect that demand for cars will remain strong in the festive season this year as the market situation has been improving post easing of Covid-19 restrictions in the most of the states.
Another reason that vehicle demand is expected to be up during peak festive season is because people are increasingly looking at personal mobility solutions amid the fear of getting infected. "Demand pull seems to be very good and it is across the segments. Due to this shift happening towards personal mobility, we are seeing a good traction across the country and across product categories and the build up to the festival season also looks to be very good," Hyundai Motor India Director -Sales, Marketing and Service, Tarun Garg told PTI.
Honda Cars India Senior Vice-President and Director - Marketing and Sales, Rajesh Goel seconded with Garg's positive perspective, saying that the market sentiment has improved since the easing of coronavirus restrictions post the second wave of pandemic. "The celebratory fervour which began with Onam in Southern India will now extend to the rest of the markets as we move towards the peak of festivities," he added.
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However, the companies remain cautious about the supply chain challenges, especially the global shortage of semiconductor chips. The industry is also aware of the possibility of the third wave of the coronavirus pandemic which could pose one of the biggest challenges for the auto sector.
Hyundai, which has also been impacted by the chip crisis, is trying to manage its production by being flexible with production and better procurement management. Support from the parent firm, Hyundai Motor Corporation, has also helped the company manage the situation so far.
Honda Cars India has also been facing supply chain issues similar to others in the industry and it has been constantly monitoring the market situation, even for any Covid-related interruptions in future. “We are also impacted by this shortage and are making our best efforts to minimise it as much as possible," Goel added.
(with inputs from PTI)