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Prices of cars, two wheelers will go up sharply in November, say dealers

Prices of cars, two wheelers will go up sharply in November, say dealers

Prices of cars, two wheelers will go up sharply in November, say dealers
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By Sangam Singh  Nov 7, 2022 11:43:55 AM IST (Updated)

FADA in its October report said that the month of November will witness drop in sales as festivities end. But in the good news to the automobile sector, the report highlighted that the overall retails for the first time closed in green by growing six percent since October 2019.

With most of the festivities ending, the month of November will witness a certain amount of softness in sales, FADA in its October report said. One of the prominent reasons the report cites is the headwinds in the 2 Wheelers rural segment despite farmers will start receiving their crop realisations in this time of the year.

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The report said that the two-wheeler segment will have to grow for at least 3-4 months over pre-covid months to come out of the woods. "The CV segment is anticipated to see continued demand due to rising infra projects and government spending. While the PV segment continues to outperform, demand in the entry-level segment continues to show some softness," FADA said.
According to FADA, most of the Original Equipment Manufacturers (OEMs) will now start migrating towards manufacturing OBD-2 norms vehicles which will lead to a steep price increase across all categories of vehicles. Another reason that body highlights is the tendency of the customers to wait for vehicles manufactured in the new year.
OBD II is an acronym for a self-diagnostic device called On-Board Diagnostic II that helps in monitoring the catalytic converter, oxygen sensors, etc. constantly to keep a close watch on emissions.
"FADA hence remains cautious as the Auto Industry approaches the year-end period," it concluded.
In good news for the automobile industry, auto retail for the month of October’ this year witnessed an overall growth of 48 percent. The report added that except for three-wheelers, which declined by 0.6 percent, all the other categories including two-wheelers, passenger vehicles, commercial vehicles, and tractors grew by 6 percent, 18 percent, 47 percent, and 13 percent respectively.
FADA also highlights the fact that when compared to the pre-covid month of 2019, overall retails for the first time closed in green by growing six percent.
"Festive’22 brings cheers to the Auto Industry as for the first-time customers of every category came out in good numbers and took part in festive purchasesthus making it the best in last 4 years," the report added. "With both Navratri and Deepawali majorly falling in a single month, the month of October saw double foot fall at Dealerships. Apart from this, new launches and good customer schemes also played a pivotal role in helping revival in demand."
Manish Raj Singhania, FADA President, said, “Auto Retail for the month of October’22 saw an overall growth of 48 percent. With most of the month under festive period, the sentiments were extremely positive across all categories of Dealership outlets."
FADA is the apex national body of the Automobile Retail Industry in India that is engaged in the sale, service, and spares of two and three Wheelers, passenger cars, UVs, and commercial vehicles (including buses and trucks). FADA India represents over 15,000 automobile dealers having 26,500 dealerships and claims to employ around 4 million people.
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