HOW LONG WOULD YOU WAIT FOR YOUR DREAM CAR?

With newer and popular models carrying a wait period of up to 24 months, are some OEMs taking customer interest and enthusiasm for granted?

Recent years have been enormously challenging for the automotive industry at large and the Indian automotive sector in particular. Switch to BS 6 emission norms, Covidinduced lockdown, rising prices, shortage of semiconductor chip, inflationary pressures — all have created numerous hurdles at a time when demand remains reasonably robust in most major markets of the world. And while lockdown may appear to be a thing of the past now and the worst of the semiconductor shortage seems to be having a gradually minimising effect, it may not be easy to go into a showroom and drive out with a brand-new car.

The demand-supply mismatch is a very real problem, and here in India, it continues to have the potential to pull sentiments down. Traditionally, the period from August till Diwali sees brisk business in the automotive market, but with waiting periods for nearly all models stretching from a few months to as high as two years, potential buyers could be in for a frustrating wait. “The supply (situation) has improved, but still the demand-supply gap is huge. The waiting period has definitely impacted customers as they have to compromise in some or the other aspects of their dream vehicle, such as colour, variant, or models,” said Vinkesh Gulati, President, Federation of Automobile Dealers Associations (FADA).

PATIENCE IS A VIRTUE. BUT ONLY FOR A FEW When Ajit Kumar Mishra walked into a prominent south Delhi car dealership, he knew that the waiting period for the model of his choice would be high. “It is just that I didn’t expect to be told I’d get the delivery at some point in late 2023,” said the 45-year-old MNC executive. “The sales executive was courteous but cautioned that the demand for the SUV model is just so high, a delivery this year was out of the question. You know, no car is worth that long of a wait.”

Mishra eventually went for the second option on his list, a model that also has a waiting period of three months for the variant he chose. For those looking at adding cars to their respective garages, the urgency is comparatively less than for first-time car buyers and those who continue to look for personal mobility options in current times of Covid. And typically, OEMs almost always brag about getting a record number of bookings but never reveal the number of cancellations, a key indicator of the persisting popularity of a model or models.

OF PROMISES AND PRACTICES

Most OEMs claim to have augmented manufacturing capabilities in order to bring down waiting periods. Most of these OEMs, however, have also pointed out how the semiconductor shortage the world over is beyond their control and rarely want to hazard a guess on when the situation is likely to improve. But while promises of speedier delivery timelines are intact, the path ahead could be a mixed bag. While automotive experts believe a slew of new launches is likely to hold the industry in good stead, several financial experts also warn that the risk of inflationary pressures and high waiting periods for newer models are likely to offset the potential ground that can be gained in the upcoming months.

TRADITIONALLY, PERIOD FROM THE

TILL DIWALI AUGUST BUSINESS IN SEES BRISK MARKET, AUTOMOTIVE PERIODS THE

WITH WAITING

BUT MODELS NEARLY ALL

FOR FROM A FEW STRETCHING

HIGH AS TWO AS MONTHS POTENTIAL TO BUYERS YEARS, FOR A COULD BE IN

WAIT. FRUSTRATING

PHOTOS: SHUTTERSTOCK (IMAGES FOR REPRESENTATIONAL PURPOSE ONLY)