Diwali is usually the season of sales and discounts, which drives consumers to purchase more products. Though Diwali is one of the major purchasing seasons in the entire year, automobile sales have taken a major hit this year after Diwali 2021.
As per experts, Diwali 2021, in terms of car and automobile sales was the worst in the decade this year. There are multiple reasons behind the decline of sales, the most common of all being chip shortages and lower demand due to the COVID-19 pandemic.
Though the demand for SUVs remains high in the country, the actual purchase levels of the vehicles remain at an all-time low this year, most likely due to depleted stocks. Apart from this, the demand for two-wheeler vehicles also remains low due to the pandemic.
Experts have said that this is the worst festive season being witnessed by the automobile industry due to lower sales and shortage of chips and essential parts. The chip shortage this year led to only have of the industry’s passenger vehicle (PV) retail demand being met.
The waiting period for cars and other vehicles has been stretched to an absurdly long time due to the chip shortage, even nine months in some cases. The chip shortage has further resulted in the shortage of vehicles in the SUV, compact-SUV, and luxury segments. Customers are also not opting for such vehicles as they are saving money in view of the pandemic.
As per the Federation of Automobile Dealer Association (FADA), all India vehicle registration numbers during Navratri and Dussera are down by 16 percent in 2021, as compared to the numbers witnessed during the festive season last year.
Though the festive period is one of the most important times for the sales of automobiles in India, the sales of PVs were down 23 percent while that of two-wheelers were down 17 percent, making it the worst Diwali 2021 the worst one in the decade for automobile dealers.
