NEW DELHI: Days after automakers saw ‘record’ rise in October wholesales figure, dealers’ association body FADA said retail auto sales in all categories, except tractors, will be negative in October 2020 when compared with October 2019 numbers.
“There is a reason for this. Last year we had major festivals, Navratri, Dhanteras and Diwali, in one month. This year they are spread in two different months. We cannot expect similar growth...Only in the
tractor segment we are expecting growth. For other segments, there will be degrowth,” Vinkesh Gulati, President of FADA told this publication.
The projection comes at a time when many voices in the government are talking about visible greenshoots and revival of the Covid-19 hit economy. While rise in wholesale figures indicate increase in manufacturing activity, retail sales give a better picture of market sentiment. India’s largest carmaker Maruti Suzuki on Sunday reported 19 per cent year-on-year growth in October dispatches while Hyundai
reported its best ever monthly sales figure. Similarly, Hero MotorCorp sold over 8 lakh units during the month, its highest ever.
“The current demand is fine but we are very disturbed regarding the future. We are not sure that this demand will continue. The pent-up demand is also over now. At present, only strong reasons such as new launches and necessity purchase is pushing sales,” Gulati added.