Even as the festive season is over, the automobile industry is witnessing an uptick in demand for two-wheelers and passenger vehicles.
According to Motilal Oswal’s research, retail demand for two-wheelers was good in November but the wholesale growth remained relatively lower majorly owing to de-stocking after the festive season. Passenger vehicle demand is not affected for the premium segment and has been muted for lower-end vehicles.
Two-wheeler demand uptick
The demand for two-wheelers has been high even after the festive season. Earlier, two-wheelers had muted demand and only witnessed an uptick in the premium two-wheeler category.
Motilal Oswal’s research states that the retail sales suggest mid-to-high single-digit year-on-year growth in November while the wholesale growth is expected to be lower.
Industry experts that were anticipating a dip in the demand after the festive season are now positive and expecting the uptick in demand to continue.
“There is a dip generally after the festive season is over. Earlier during the festive season, we were concerned regarding the demand for two-wheelers as the demand was not strong. However, However, two-wheelers are responding well and the demands are high.” said Manish Singhania, president of the Federation of Automobile Dealers Associations (FADA).
While there is an uptick in the two-wheelers, the passenger vehicles demand in the country has subsided.
Demand and bookings in passenger vehicles have not fallen in November with Grand Vitara having a waiting period of three-to-four months, ScorpioN/XUV700 is eight-to-ten months for the preferred top-end variants and three-to-four months for the lower-end variants according the Motilal Oswal research.
“Dealers across the country and OEMs have heavy booking orders for passenger vehicles. OEM needs to reconfigure as to what they need to supply that will ensure the overall PV growth,” added Manish Singhania.