GOING INTO HIGH GEAR

WITH SALES NEARLY TOUCHING 2019 LEVELS, 2021 HOLDS PROMISE FOR THE AUTO INDUSTRY

The first quarter of 2021 has been remarkable for the automotive industry. Despite some very tough months for the country as a whole, sales have bounced back to not just last year’s levels but nearly to 2019 levels. The trends emerging from the lockdown reinforce the previous direction, in terms of the move towards more luxurious and feature-laden vehicles in each segment, and towards SUVs in particular at one end of the spectrum even as demand has shifted back to the entry level bare-basic commuter at the other end.

The vehicles in demand now have long waiting periods, up to nine months in some instances, though that is largely because of the global semiconductor shortage. In many countries, pre-owned vehicles have seen a spurt in prices and nearly-new second hand vehicles are selling above list prices of brand new cars. The record-breaking fuel prices do not seem to have dampened demand yet. This is because there are no alternatives, with only small players in the electric twowheeler space at one end of the scale and the very high-end vehicles from premium and luxury auto brands at the other end.

All that is going to change very soon with Ola Electric announcing the opening of bookings for its first product—an electric scooter. It got over 100,000 bookings on the first day. To be made at its Futurefactory, which has an installed capacity of 10 million vehicles a year, Ola may well herald the electric revolution we have been waiting for. ■