Analyst reports indicate that December was subdued for the Indian automotive industry.
The retail sales were weak across segments dragged by lower discounts, farmers’ protest, customers waiting for refreshed 2021 models, among other reasons.
Retail sales are also expected to remain under pressure in the coming months due to price hikes that certain automakers have taken, effective January.
While passenger vehicle sales are estimated to remain stable, the current discounts are much lower than last year due to a sharp increase in input costs.
The coronavirus pandemic this year disrupted lives and businesses across sectors. And while the economy is still on its path to recovery, one sector that showed faster turnaround is the automotive industry. But while automakers have witnessed improving signs of demand and sales over the past few months, December is likely to be a subdued show.
A report from brokerage firm, Dolat Capital (DART) indicates that retail sales were weak across segments, dragged by lower discounts, farmers’ protest, customers waiting for refreshed 2021 models, among other reasons.
According to the DART report dated December 28, retail sales (across segments) in Punjab, Haryana and Delhi-NCR have been adversely affected by the ongoing farmers’ protests. On the other hand, Maharashtra is recovering well and almost back to pre-Covid level, while Southern and Western (especially Gujarat) markets are still slow, the report said.
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The report also noted that though passenger vehicle (PV) sales were stable YoY, the current discounts are much lower than last year due to a sharp increase in input costs. Two-wheeler retail sales were weak due to exhaustion of pent up demand.
Retail sales are also expected to remain under pressure in the coming months due to price hikes that certain automakers have taken, effective January.
Here’s what to expect from Maruti, M&M, Hero, Bajaj Auto and other automakers in December auto sales.
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