PV gross sales might recuperate to 2019 ranges, however third wave nonetheless a fear

Going by the auto gross sales within the first six months of calendar 12 months 2021, auto analysts forecast that the passenger car (PV) phase might contact the CY19 ranges by the tip of this 12 months.
Even if that occurs, it could not be proper to say that PV gross sales have returned to well being as calendar 12 months 2019 wasn’t a terrific 12 months for the trade — PV gross sales in that 12 months had declined 12 per cent to 29,36,839 models, from the all-time excessive of 33,49,386 models in CY18.
Even as PV gross sales plummeted to 88,045 models in May 2021 because of the Covid-19 second wave, the general January-June 2021 gross sales have been 14,30,184 models, a lakh models under the 15,28,233 offered in January-June 2019. Som Kapoor, associate, automotive sector, EY India, stated he’s cautiously optimistic whether or not or not PV gross sales can match CY19 ranges. “The optimism stems from the fact that CY19 sales were low. Also, there is some pent-up demand right now, especially in urban markets, and so matching 2019 levels may not be difficult.”
“But I am also cautious because the Covid-19 second wave has hit closer to home, and many households ended up spending a lot of healthcare, so the willingness to spend on discretionary items such as PVs is lesser this year. On top of that, people are anticipating a third wave. Instead of buying a car, they may want to save cash,” he added. The PV gross sales forecast pattern for CY21 by IHS Markit factors to the truth that in July-December 2021 PV gross sales might beat 2019 ranges.

Gaurav Vangaal, affiliate director, IHS Markit, stated, “While trends indicate that H2CY21 sales would be better than both in 2020 and 2019, the global semiconductor shortage could be a challenge to the supply side, and a possible third wave could be a risk to the demand side.”