Auto sales in H1 FY21 improve serially but remain in red across segments - watsupptoday.com
Auto sales in H1 FY21 improve serially but remain in red across segments
Posted 17 Oct 2020 03:25 PM

17-10-2020

Since mid-March 2020, the Indian automotive industry has been reeling under a series of unprecedented problems that have crippled production, productivity and sales. Yet to recover from the 18-month long slowdown even in March, the industry was beset with economic uncertainty, the challenges of the transition to BS-VI norms, the Coronavirus pandemic, nationwide lockdown, supply chain constraints, and labour migration.

All these will make the fiscal year 2020-21, according to industry veterans, an exceptional one in the history of the automotive industry, which accounts for 49% of the manufacturing GDP in the country.

Though the year began with zero production and nil sales, the auto sector surprisingly got back its footing faster than expected, with sequential growth in month-on-month sales. This may be attributed to the pent-up demand, preference for personal mobility during the pandemic, gradual opening up of Tier- 2, Tier-3 markets, easing of supply chains, labour availability, the excitement of new launches, pushing up of stocks at dealerships, and the high expectations from the upcoming festive season in this month and next.

However, as per the latest data released by the industry body Society of Indian Automobile Manufacturers (SIAM) on Friday, total domestic sales across segments at 70,87,439 units during April-September 2020 remained in red.

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