India’s automobile sector is slowly recovering from the grip of Corona. In the last month of August, there has been good growth in the retail sales of passenger vehicles. At the same time, the sector has high hopes for the festive season as well. Hyundai and Honda, one of the major car companies, are expecting an increase in the demand for cars in the festive season.
The company says that corona restrictions have been lifted in most states. After the removal of corona restrictions, the festive season is expected to be good for car companies. Car companies say that due to the epidemic, now more and more customers want to buy their personal vehicles. Hence, sales are likely to remain strong during the busy festive season.
Good demand across various products
Tarun Garg, Director (Sales, Marketing and Service), Hyundai Motor India said that the demand for cars in the market is good. The desire to buy personal cars has led to a good demand across various product categories across the country. The atmosphere is looking good for the festive season. Echoing similar views, Rajesh Goel, Vice President and Director (Marketing and Sales), of Honda Cars India said the market situation has improved after the removal of corona restrictions.
Demand has picked up in the last few months
Rajesh Goyal said the improvement in industry sales figures over the past few months has been better than the initial estimates, which is a good thing. The same practice is expected to continue during festivals. The fastival season has started with Onam in South India. Now the spirit of enthusiasm is evident in other markets of the world as well.
Chip shortage will worsen the situation
Automobile companies believe that going forward, the sector may face a supply challenge due to a semiconductor shortage. Apart from this, the third wave of the epidemic can also derail the vehicle sector. The Federation of Automobile Dealers Associations (Feda), an association of vehicle dealers, feared that the lack of chips could lead to a fall in retail sales of passenger vehicles during the festive season.
At present, auto companies are struggling to keep adequate supply to the dealers due to a shortage of semiconductors. Talking about chip shortage, Garg said it has affected Hyundai along with other companies in the industry. The company is trying to manage its products better under the current circumstances.
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