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Auto Industry is recovering faster than expected

Its is very positive news overall for automaker, dealers, and economy. The Auto Industry which has a very significant contribution to GDP, also employes lakhs of people, directly and indirectly, is on the clear recovery path. As per CDT analysis, it would take another two to three months to reach the pre-COVID time. Thankfully our rural economy is already reaching the pre COVID level due to good crop and the good price paid by the government to the farmers to buy the crop directly. Due to the strong agriculture sector, tractors sales saw a very good demand pattern throughput lockdown. If weather forecast to be believed, as per predictions India will witness a healthy monsoon, so demand in tractors will continue to grow and momentum will be on in the coming months.

The Two-wheeler industry has registered up to  80% sales, which will be considered very healthy despite the lockdown in many high demand cities and pockets. Cities with high demand and high containment zones could not contribute to these numbers, which clearly suggests, two-wheeler demand is very natural and close to pre-COVID months.

The car industry has also recovered faster than expected, major automakers have touched 50% sales. As per the dealers, the industry has largely dusted off its hands over the BS-IV inventory, except a minimal number left stocked at the dealerships in containment zones of urban cities. In most cases, retails are much higher than wholesales numbers that is again a very healthy sign for the dealers and manufacturers.

While some of these OEMs faced supply chain constraints, due to pent up demand and festivals approaching in the coming month's Industry will be on a positive sales recovery.

Industry experts trust that this demand in the sector will continue to remain positive. The industry is expected to ride on Cars and Two-wheelers, which is expected to bring huge incremental demand on customers avoiding public and other modes of transport due to COVID infection fear.