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auto | IST

Green shoots across auto sector: Is the industry finally on revival path?

Some green shoots have been visible in the auto sector lately owing to the festive season, a big positive for the industry after a year of decline. However, according to Nikunj Sanghi, chairman of Automotive Skill Development Council (ASDC), the positive trends during the festive season — largely October — should not be seen as a sign of demand revival.
Sanghi maintained that the next four to five months are going to be very challenging for the industry. "Compared to the last festival we are seeing growth but we should not read revival into this,” he said.
"November-December is definitely a challenge and with the entire festival season gone in October, when we start comparing November YoY, we will see a dip in November this year and with the transition coming in, most manufacturers will phase out or slowly phase out BS-IV production in slowly moving to BS-VI production," Sanghi told CNBC-TV18.
Sameer Kalra, founder of Target Investing, believes if November and December are stable in terms of sales, then "we have an improvement or a U-turn" or "this becomes mere a bounce".
“I would say October was one of the best of the year and on YoY basis also there has been a good growth considering that Navratri, Dussehra and Diwali were in October," said Nishant Arya, ED of Jay Bharat Maruti. Arya believes the positive sentiment may continue going forward, however, the 2-wheeler segment may take some time to recover.