Automobile dealers’ body FADA on Tuesday termed the current festive season as the worst in terms of business in a decade for its retail partners across the country.
The industry body, which represents over 15,000 auto dealers that own over 26,500 outlets across the country, said the chip shortage situation has impacted offtake in the passenger vehicle segment.
FADA President Vinkesh Gulati said in a statement, “This is the worst festive season that the Indian auto retail has seen in the last decade. Chip shortage is impacting supplies in PV creating a huge shortage of vehicles in SUV, compact – SUV and luxury segment.”
The entry-level passenger vehicle segment is still seeing less demand due to customers conserving money for the health care needs, he added.
Gulati noted that sales in the entry two-wheeler segment were still not picking up due to rural distress and fuel prices, and people are trying to save for healthcare emergencies rather than making a high-value purchase.
In the commercial vehicles space, the situation was comparatively better with a pick-up in demand for intra-state movement of goods.
On Dhanteras, which sees robust deliveries of vehicles to customers, major companies were yet to come out with official numbers.
MG Motor India said it delivered over 500 units of its mid-sized SUV Astor to customers during the auspicious day.
The automaker has delivered the first batch of more than 500 vehicles to customers on the auspicious occasion of Dhanteras, MG Motor India said in a statement.
This is particularly special considering the acute shortage of chips, it added. The company further said it is trying its best to improve the availability to meet its initial target of 4,000-5,000 deliveries by the end of December 2021.