BANGALORE: Automobile sales will pick up in the next six months with large number of buyers lining up to purchase vehicles in the upcoming festival season, according to macro analytics firm ZyFin Research. But the slight uptick in sales is still no where close to 2009-10 sales.
The vehicle purchase sentiment index is said to have gone up by 2.5 points to 17.5 in September 2014 when compared to 15.0 recorded in the previous month. The uptrend is after many months of uncertainty in the automobile market in India. There will be a sales increase in both two wheelers as well as four wheelers, it said.
“Although the uptrend in Vehicle Purchase Sentiment Index suggests recovering willingness to spend, the low score still indicates a lot of pessimism. It would take some more time for auto sales to reach levels witnessed during 2009-10. However, for now, we can expect some moderate uptick in sales growth, especially during the festive season,” Debopam Chaudhuri, Chief Economist, ZyFin Research said.
Diwali sales saw only a handful of automakers report high numbers while other were reeling under sluggish demand. According to the report, metro and tier II cities showed a higher willingness to purchase vehicles over Tier I
“Historically, the sentiment index has had a strong correlation with actual sales of passenger vehicles. With the festive season coinciding with the uptrend in sentiment, auto sales are expected to be better this season, as compared to 2012 or 2013,” the report said.