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Finally, after two years of declining sales due to the spread of COVID-19 and the global shortage of semiconductor chips in the entire world, the Indian auto industry, especially the car market expects to witness substantial growth by the end of this year. According to reports, industry experts believe that the annual sales of the car industry will grow up to 20 per cent by the end of this year. The experts believe that much of this growth will take place during the upcoming festive season.

 

 

Commenting about the expected growth during the festive season, Shashank Srivastava, Executive Director, Maruti Suzuki India Limited, said, “Fortunately, the festive season is spread across many months. It started with Onam on August 17, now Ganesh Chaturthi and later Navratri”. He also added, “Onam is a better indicator, and so far the number of bookings we received is 12,000, which is 10 to 15 per cent higher than last year”.

 

During the first five months of this year, the car industry touched the mark of selling 15.82 units. However, the country’s leading car manufacturing company Maruti Suzuki India Limited expected sales of about 19 lakh units of cars during the first six months of this year. With this, the first six months also witnessed the new launches from the domestic carmaker Mahindra & Mahindra and the Indo-Japanese carmaker MSIL

 

Speaking about the expected growth during the festive season, Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles Limited, said, “Strong Q1 has given the much-needed boost to the industry after two years of the downturn”. Moving ahead, Chandra said, “We expect the industry to further grow in Q2, owing to strong order pipeline, new launches, low channel inventory, and festive demand. We have to cautiously observe demand after the festive season, given that the first half of 2022 has been strong on supplies. It may release the pent-up demand and seasonality may start hitting the industry. However, Industry seems to be well poised to surpass the peak achieved in FY19”.

 

With the improvement in the supply of semiconductors, production will increase accordingly and the industry will be in a position to deliver the pending bookings as well. According to an estimate, there are about 7.5 lakh vehicles under waiting with different manufacturers.

 

Expressing his thoughts on expected growth, Tarun Garge, Director, of Sales and Marketing, Hyundai Motors India Limited, said, “We will continue to focus on matching supply with demand. With improving semiconductor supply, our production is now at optimum levels. As the demand is still exceeding supply, our priority during the festive season will be to reduce the waiting period and expedite deliveries. The waiting period now ranges from 4 to 5 months across models”.