Fuel prices, third wave are risks: Crisil
Festive season sales and pent-up demand along with new offerings are expected to push automobile dealers’ volumes up by 10-15% in FY22, even as they see a patchy recovery this fiscal, according to a survey by credit ratings agency Crisil.
However, a possible third wave of COVID-19, spurt in fuel prices and supply constraints of original equipment manufacturers (OEMs) are seen among factors that could slow the sector down, Crisil said on Monday.
Also, the performance of the dealers varies sharply from region to region with the dealerships in north India being impacted the most, the agency said.
“Last fiscal did see a demand uptick during the festival season, but it did not sustain. This fiscal, too, sales across segments are yet to reach pre-pandemic levels,” Crisil said.
“Also, the deal conversion cycle has doubled, with customers deferring purchase decisions,” said director Bhushan Parekh.
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