Prolonged and Constant Car Demand Depends on the Economy and Covid-19 Situation: Maruti Suzuki
Car sales after the holidays have not been as bad as expected with suppressed demand playing a positive role, but the long and steady demand in the auto industry will depend on the economy and developments around the Covid-19 vaccine. , according to a senior official from India’s largest automaker, Maruti Suzuki India.
“The automotive industry expected a large decrease in consumer interest in terms of reservations and inquiries. Although there has been a decline, it is marginal and certainly not as much as the expectations or fear that was in the industry, ”Maruti Suzuki India CEO (marketing and sales) Shashank Srivastava told reporters in an interaction on Wednesday .
He added that in that sense it is a much more positive post-festival scenario than previously anticipated. Following current booking and inquiry trends and low stock levels at distributors and manufacturers, December should be fine, Srivastava said.
According to the Federation of Automobile Dealers Associations, retail sales of passenger cars in November saw a year-on-year increase of 4.17 percent to 2.91,001 units as the Diwali-Dhanteras period led to an increase in registrations of vehicles, compared to 2,79,365 units. in November 2019.
When asked about the road ahead, Srivastava said: “Until now there has been an element of pent-up demand. We really don’t know when it will drain. “So, he added, fresh demand, long, steady demand in the auto industry is completely dependent on the fundamentals of the economy.” There is a very high correlation between auto demand and growth. per capita. “He said that will also depend on sentiment around the Covid-19 pandemic.
“On those two factors, there is still some kind of uncertainty, although we are also hearing positive noises on both fronts,” he said. Those were the main reasons “why manufacturers are little concerned with giving guidance for the next quarter and beyond,” added Srivastava.