After tough Q1-2020, Q1-2021 has brought some respite for Indian Passenger car manufacturers. In fact, in the last two decades, Q1-2021 is the best so far. Demand for both new and used passenger cars has gone up in urban areas and rural areas with a good harvest.
The driver of demand, is a strong need for personal mobility, in this highly uncertain environment world is in. Look closely at demand, and one could see that budget car sales is low as compared to the high-value segment. Swift+Baleno has outsold Alto+Wagon R combined in 2021. In fact, replacing Alto, Swift has become the best-selling car in India for quite some time now.
Though certain sectors of the economy are hit hard by pandemic, certain other, relatively high income generating sectors like IT, BFSI, FMCG are doing well. But uncertainty remains, and planners need to be cautious for the future, and always need to keep Q3 and Q4 of 2019 in mind or any other sign of a bubble in making. Also, 2 wheeler and commercial vehicle segment are yet to get completely out of woods.
