New Delhi. The crisis on the auto industry, which is battling the Corona epidemic and many global problems, does not seem to be over yet. Even after two years, the sales of vehicles have not reached the pre-Covid level. Recently, the sales figures of vehicles have been released by the Federation of Automobile Dealers Association of India (FADA), in which the sales of many companies have not been as expected. In this regard, talked to FADA President Vinkesh Gulati. Let us know through question and answer how the coming time is going to be for the auto sector.
Question: How positive is the coming time for the auto sector?
answer: In the last two years, the supply chain has been affected to a great extent due to corona virus and other reasons around the world. Due to this, the waiting time on passenger vehicles has increased significantly. However, the demand in this segment remains despite the long waiting times and price hikes. It is expected that the supply chain is fine, the sales of passenger vehicles will increase. On the other hand, if we talk about two-wheelers, then in the last two years, its sales have declined significantly. Due to the shortage of semiconductors, waiting has started on the premium segment bikes too. At the same time, the demand for 100 cc bikes has come down due to increase in acquisition price, financial disturbance due to Kovid and increase in repo rate. Accordingly, the two-vehicle segment does not appear to be growing as expected.
Question: Will the price of vehicles continue to increase in the same way?
answer: Yes, the prices will continue to rise, because there is a lockdown in China and the Russia-Ukraine war is going on, so all this has an impact on the supply chain and input costs. The Indian auto mobile sector largely depends on the global market, as many raw materials including auto parts are imported from abroad. Therefore, in the coming time also we will get to see an increase in the prices very soon.
Question: Only old dealers are focusing on selling electric vehicles?
answer: It all depends on the demand of the customers. If the demand for electric vehicles starts increasing in the market, then it is possible that the focus of the dealers should also be shifted towards this segment. Like Maruti Suzuki sells CNG cars along with petrol, they have their own customer base. As the demand for electric vehicles increases in the country, the focus of dealers will also increase in that direction.
Question: Sales of entry level cars are declining, what is the reason for this?
answer: Entry level vehicles are most in demand in rural areas. In the last years, the price of petrol and diesel has increased, due to Corona, the financial burden has also increased on many people and to some extent the increased prices are also affecting their demand. However, it is expected that as the situation improves, the demand for these cars may increase back.
question: Will inflation increase the burden on customers due to safety features?
answer: It can be said simply that once the price increases, they cannot be reduced. However, it is expected that when some companies will launch new products and due to competition, they can manage their prices. But this cannot be seen within a year. Therefore, it cannot be said that the prices will come down soon.
FIRST PUBLISHED : May 05, 2022, 14:49 IST