Two-wheeler and small car segments will revive post COVID-19Anusha Sathish (Author) Published Date : Apr 15, 2020 14:04 IST
Coronavirus almost destroys the economy of every country, and across industries, the impact was huge. But the oasis or the sweet spot for the automotive industry amid the disaster is the revival chances for two-wheeler and entry-level small car segment.
The mantra is social distancing, and the ride hailers will get a hit temporarily where the people may prefer to ride alone. The flip side is since a lot of companies are shut, people may find buying a luxury car or luxury two-wheeler as discretionary expenses, but at the same to ensure social distancing, they may go for an entry-level car-buy or a two-wheeler buy without firing their pockets.
Hero Motocorp Chairman, Pawan Munjal and Mahindra & Mahindra Chairman Pawan Goenka opined, "People will continue to follow social distancing even after the crisis gets over. This will bring a change in the way they commute. Daily commuters may try to avoid public transport and migrated to a two-wheeler, which is affordable.
The mass-market motorcycle and scooters will be the way forward. On the other hand, according to a survey taken by CarWale inferred that people look forward to buying entry-level cars keeping in mind the small budget may not hole their wallets. At this stage, owned vehicles will emerge. After the emission norms, the entry-level car prices have also gone up by 10-15%, and the demand slowed down.
This pandemic might revive the sales, at least for the short term. Post the lockdown, and there are some expectations that the inquiry to purchase conversion may get reduced, the viewpoint of the people may change and downgrade their budget to small cars and look for only trusted brands.
It is the time now that the home-grown veteran player Maruti will be benefitted the most, followed by other players Hyundai and Renault, who have entry-level models. A quarter or two is required for the auto industry to come back to its normal pace after the lockdown is lifted.
As the agricultural segment continues to operate and the government giving a fillip to rural areas, the demand for two-wheeler is expected to spike.
Two-wheeler and small car segments will revive post COVID-19