Showroom walk-ins few and far between, auto buying goes online
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Synopsis
While showroom walk-ins have been negligible, online enquiries have boomed. Most of the buying process has shifted online, from sending quotations and colour options to arranging finance, getting vehicles registered and payments, leaving vehicle delivery as the only physical transaction.
Agencies
Representative Image
After a 40-day shutdown to curb the spread of the second Covid-19 wave, Manish Singhania opened his
Mahindra auto dealership in Chhattisgarh on May 19. The timings were shorter, restricted to between 11 am and 4 pm and the staff were minimal. Auto dealerships in 36 cities have opened and are operating on restricted timings. But things are not the same as before.
Mumbai
Maharashtra
India
Chhattisgarh
Nikunj-sanghi
Shashank-srivastava
Amar-sheth
Manish-singhania
Pranav-shah
Volkswagen
Honda
Alwar-based-nikunj-sanghi
Covid second wave and subsequent lockdown impacts sales
Suppressed demand due to the Covid second wave and subsequent lockdown has pushed up the inventory levels of two-wheelers at dealerships across the country. Compared to an inventory of 15-20 days prior to the lockdown in the first quarter of 2020, the inventory has climbed up to 41-46 days at the end of the fourth quarter of 2021. This has put a majority of dealers in the two wheeler segment in the danger of defaulting on credit.
Vinkesh Gulati, President, FADA told BusinessLine “We already started the lockdown with a high inventory level of 40-plus days. After which, there have been no sales. A typical tranche cycle of a bank is 30-45 days, after which the dealers have to repay the loans. The dates for the repayment of loans are approaching. However, dealers are yet to sell off their inventory, so they don’t have the money to repay.”
Chennai
Tamil-nadu
India
Bharat-chordia
Hetal-gandhi
Pranav-shah
Vinkesh-gulati
Crisil-research
Federation-of-automobile-dealers-associations
Automobile-dealers-associations
Two-wheeler
Dealers