The month of April comes with festivities like Ugadi, Gudi Padwa, Baisakhi and Poila Boishakh. This coupled with marriage season is generally a high sales period. At this juncture, the second wave of Covid is not only spreading faster but is also trying to destabilize the growth which India has been able to achieve in the last few months.
Any lockdown at this point will severely hamper the momentum which is getting built for the Auto Industry to come out of the woods. Increase of Covid and fear amongst consumer with last year’s sight in mind has started keeping them away from making high ticket purchase.
The effects of the same can be seen in a 2-Wheeler category where inquiry levels are low. This coupled with semiconductor shortage will continue to hamper not only Passenger Vehicles but also Two Wheelers as ABS shortage is currently ringing alarm bells.
Since Maharashtra contributes 10-11% of the auto retail, the current Lockdown will have catastrophic
effect on overall sales for the month of April.
Overall, FADA maintains extreme caution for the month of April as Covid rises to newer high