Longer waiting periods dampen Dhanteras for auto sector
New Delhi
02-November-2021

PHOTO: IANS
Longer waiting periods, along with high cost due to recent price hikes, dampened the off-take of automobile sector during the auspcious occassion of Dhanteras, which marks the first day of Diwali celebrations.
On this day, goddess of wealth, Goddess Lakshmi, is worshipped, and it is important to purchase items of value like ornaments, gemstones, and any household appliance, made of metal including automobiles.
However, this year, a global shortage of an electronic component -- semiconductors or micro-chips -- has caused production issues, which, in turn, elongated the waiting period of popular automobile models.
Besides, high fuel cost combined with inflationary pressure dampened the sales momentum.
On the retail trend this Dhanteras, FADA President Vinkesh Gulati said that this was the worst festive season which Indian auto retail has seen in the last decade.
"While chip shortage is impacting supplies in PV, it is creating a huge shortage of vehicles in SUV, compact SUV, and luxury segment. Entry level PV is still seeing less demand due to customers conserving money for healthcare needs."
"2W entry level sales still not picking up due to rural distress, fuel prices and people still trying to save for healthcare emergencies rather then making a high value purchase."
Watch This TWL Video
In terms of CV segment, he said that already SCV has done well post unlocking and demand for intra state movement of goods.
"M&HCV performing wherever govt. infra projects coming up. In 3W, we are seeing a big churn happening from ICE to EV. Tractors which has already seen 2 bumper years taking a breather now."
ICRA Vice President & Sector Head, Corporate Ratings, Shamsher Dewan, said: "Two-wheeler sales have been weak overall during the festive season because of rising cost of ownership and subdued demand from rural markets."
"PV underlying demand is healthy but challenges on supply side remain a concern - IANS
More Headlines
Indian Astronaut Shubhanshu Shukla to Return to Earth from ISS on July 15, Confirms ISRO
Tamil Nadu on High Alert After Nipah Cases in Kerala, High Vigil Along State Border
National Tennis Player Radhika Yadav Shot Dead by Father in Gurugram After Dispute Over Academy
Comedian-actor Kapil Sharma’s Kap’s Cafe in Canada Attacked in Shooting
Taj City’s Green Push Turns Landfill Into Miyawaki Forest
Indian Astronaut Shubhanshu Shukla to Return to Earth from ISS on July 15, Confirms ISRO
Tamil Nadu on High Alert After Nipah Cases in Kerala, High Vigil Along State Border
National Tennis Player Radhika Yadav Shot Dead by Father in Gurugram After Dispute Over Academy
Comedian-actor Kapil Sharma’s Kap’s Cafe in Canada Attacked in Shooting
Taj City’s Green Push Turns Landfill Into Miyawaki Forest