Compared to passenger car sales, the sales of industrial autos is believed to be a extra crucial parameter to gauge financial progress.
The sales of industrial autos in India rose drastically in the month of November, as the financial revival caught pace right after months of lockdown. As the nation witnessed a gradual rise in infrastructure activities and development in the e-commerce sector, retail sales of industrial autos rose 12.7 per cent on-month in November, stated a report by Care Ratings. However, the rise in demand was mainly noticed in light industrial autos. While the demand for the bus segment remained muted as most schools continue to stay closed and a significant quantity of offices nonetheless practice the work from residence culture, the medium and heavy industrial autos also grappled.
The big causes for low demand for medium and heavy CVs have been inflated costs of BS-6 models, sourcing finance, higher fuel costs, and no implementation of the scrappage policy, the report added. Compared to passenger car sales, the sales of industrial autos is believed to be a extra crucial parameter to gauge financial progress.
Nevertheless, a comparison on a year-on-year basis shows that the retail sales of automobiles are at practically 80 per cent of final year’s levels, which reflects an impressive recovery of the sector in a pandemic year. The speedy revival in the auto sector can be attributed to the improved sales of 2-wheelers and passenger autos. While the 2-wheeler sales rose 35.7 per cent on-month, 3-wheeler sales jumped 8.1 per cent, and passenger autos sales rose 16.5 per cent on-month. On the other hand, tractor sales remained the only segment that saw a month-on-month contraction in the course of November 2020.
Though the car sales are on a rise, reaching pre-covid levels of sales appears improbable in FY21, as customer demand for automobiles is anticipated to stagnate in the fourth quarter of the existing fiscal, Care Ratings stated. The festive season has practically ended and therefore, close to-term demand for automobiles is anticipated to rely on how swiftly the economy progresses and lifts customer incomes. It is to be noted that November 2020 was a substantial month for discretionary purchases as it integrated major festivals and marked the onset of wedding season in India.