Nikunj Sanghi, chairman of Automotive Skills Development Council (ASDC), believes this festive season is likely to be extremely positive for the auto sector. Sanghi said that he observed positivity coming back to the market with enquiries and footfalls increasing.
“You can see the intention of purchase by the customer and the manufacturers have also gone all the way out and offered some of the best consumer schemes ever to bring back the customers to the showroom and it's paying dividends,” said Sanghi in an interview with CNBC-TV18.
In the last couple of months, manufacturers of automobiles reduced production by staggering numbers owing to the slowdown, the sector's worst crisis in two decades. With Navratri round the corner now, the expectation is that the festive season will push the sector out of the crisis.
Sanghi, and Sameer Kalra, founder of Target Investing, spoke at length about the latest happenings in the auto space.
“Monsoon has been good and monsoon always has a positive sentiment in the market. We are also seeing that with the monsoon holding well, the crop price this time has stood and a positive crop price will definitely put some money in the hands of the rural economy and the growth which was coming from the rural economy, some part of it will return into this festival," said Sanghi.
The number of registrations per day has increased by 18 percent month-on-month (MoM) and 22 percent year-on-year (YoY)," Kalra said.
“However, August was dominated by a lot of floods on the south side and the west and that has factored lower registrations in the month of August,” Kalra added.