Automobile

Auto sales may plunge 30% this festive season. But don’t blindly point a finger at tepid demand.

By Eduardo Saverin

Customer offering pooja after buying a car at Ace Honda Showroom on the occasion of Dhanteras festival, on November 12, 2020 in New Delhi, India.

Synopsis

Last year, auto sales during the 42-day festive period had dropped 4.74%. This year, the decline could be much sharper. While dealers are seeing uptick in consumer sentiment, supply-side constraints, including a prolonged chip shortage, are limiting automakers’ ability to manufacture and dispatch vehicles to retail outlets.

It was supposed to bring the much-awaited tarmac after a long stretch of rough roads. Everyone in the Indian auto industry, from manufacturers to dealers to suppliers, had their hopes pinned on the October-November festive season when sales normally peak. They are now on a wing and a prayer. Last year, as the pandemic hit the economy, auto sales dropped 4.74% during the 42-day festive period. This year, the decline could be steeper at 25%-30%.

BY

12 mins read, Last Updated:

  • GIFT ARTICLE
  • FONT SIZE

    AbcSmall

    AbcMedium

    AbcLarge

  • SAVE
  • PRINT
  • COMMENT

Sign in to read the full article

You’ve got this Prime Story as a Free Gift

Already a Member?

THE GREAT DIWALI OFFER

GET FLAT 30% OFF

ON ET PRIME MEMBERSHIP

Get Offer

Why ?

  • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

  • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

  • Clean experience with
    Minimal Ads

  • Comment & Engage with ET Prime community

  • Exclusive invites to Virtual Events with Industry Leaders

  • A trusted team of Journalists & Analysts who can best filter signal from noise

For all the latest Automobiles News Click Here 

 For the latest news and updates, follow us on Google News. 

Read original article here

Denial of responsibility! TheDailyCheck is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected] The content will be deleted within 24 hours.

Eduardo Saverin