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CVs will continue to face problems of finance availability, says SIAM's Rajan Wadhera

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Rajan Wadhera, president of SIAM and Vinkesh Gulati, the current vice president and soon to be president of the FADA shared their views and outlook.

The festive season, particularly October and November, could see a renewed interest in auto sales, said two key industry bodies from the sector. Rajan Wadhera, president of the auto manufacturers association, Society of Indian Automobile Manufacturers (SIAM) and Vinkesh Gulati, the current vice president and soon to be president of the Federation of Automobile Dealers Association of India (FADA)—the body which represents auto dealers shared their views and outlook.
Auto sales in August were much better than July, Wadhera said.
“The retail is not as good as the wholesale. The retail data shows overall 28 percent degrowth. About a very moderate kind of degrowth in the passenger vehicle (PV) segment but commercial vehicle (CV) segment degrowth is almost 46 percent, the three-wheeler is about 69 percent and two-wheeler is about 30 percent. So overall the data that we could lay our hands on in the area of retail is showing about 28 percent negative and industry had a good wholesale of 1.6 percent. This is year-on-year (YoY) data.”
Things are coming to a near-normal and PV sales are better compared to the two-wheelers, said Gulati.
“We are getting decent inquiries for the festive season and August has seen festive season already across some parts of the country. The passenger vehicle has been good in the dispatches to the dealer. A similar effect we are seeing in the ground reality also. We are still not seeing growth YoY but things are coming to a near-normal and the retail sales in the passenger vehicle is better compared to the two-wheelers.”
The three-wheeler segment is facing the worst stress in terms of finance availability, Wadhera stressed, “From whatever information that one has, the most stressed for the finance availability is the three-wheeler segment. Other segments are not that stressed and the availability of finance particularly for PV vehicles, small cars where people want personal mobility is not an issue, the two-wheeler is not much of an issue, a lot of demand is coming from rural, semi-urban areas. So medium CV, the heavy CV will continue to face problems of finance availability but I believe with orders in hand in the area of construction and highway road construction, infrastructure development, finance should get easily available the moment people have orders in hand. So I don’t see that as a very big problem.”
“October, November is going to be very good months. My own understanding is that industry is going to be in for good times,” Wadhera added.
When asked how long he sees the stress pan out in the auto industry, Gulati replied, “I feel CV segment will take some more time than the other segments because it is based on the economy and I am not seeing economy coming up very soon to their pre-COVID levels and CV segment has already been in stress for the past 10 years, so I feel CV segment coming back to normal or seeing a good growth is another six-eight month ahead from today.”
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