Auto dealers’ volumes to rise 10-15% in FY22: Crisi
Festive season sales and pent-up demand along with new launches are expected to push automobile dealers’ volumes up by 10-15% in FY22, even as they see a patchy recovery this fiscal, according to a survey by credit ratings agency Crisil.
However, a possible third wave of Covid-19, spurt in fuel prices and supply constraints of original equipment manufacturers (OEMS) are seen among factors that could slow the sector down, Crisil said on Monday. senger vehicles and commercial vehicles expect sales to increase passenger and commercial vehicles with a fair mix across uptick during the festival season, but it did not sustain. Twowheeler dealers were the most impacted. This fiscal, too, sales across segments are yet to reach pre-pandemic levels.
“Also, the deal conversion cycle has doubled, with customers deferring purchase decisions. While sentiment is positive among dealers, the risk of a third wave during the upcoming festive season is a key concern,” says Bhushan Parekh, director, Crisil.
Similar to the last fiscal, regional performance is expected to show sharp variaexpect a decline.
Last fiscal, as many as 45 the commercial vehicle dea surveyed in the north and 67 the west witnessed over 20 cent year-on-year declin sales. Overall, two-wheeler ers are optimistic about s this fiscal, Crisil said. At same time, dealers in the and west expect higher s while 33% in the north and in the south are not as hop Last fiscal, around 60% of two-wheeler dealers survey the north and south repo over 20% year- on-year decli sales, according to the agen