Covid-19 pandemic has pushed back luxury car segment in India by 5-7 yrs: Audi

The coronavirus pandemic has hit arduous the posh automobile section in India, taking it again by 5 to seven years, and it’ll take two to 3 years to succeed in the degrees witnessed round 2014-2015, based on a high official of German auto main Audi.

With gradual restoration going down submit Covid-19 induced disruptions, gross sales will witness progress subsequent yr, albeit on a decrease base.

“While we all are saying that sales are growing and there are positive sentiments and we will also grow next year…the base has become lower,” Audi India Head Balbir Singh Dhillon advised PTI.

“The number of cars that were sold in 2014-2015, we are not going to reach those levels immediately next year. So pandemic has actually taken us back by five-seven years,” Dhillon added.

In 2014, luxurious automobile gross sales in India stood at round 30,000 models, whereas it was at round 31,000 models in 2015.

When requested how quickly the posh automobile trade can flip round and recuperate the misplaced floor, he stated, “For sure not next year, for the luxury segment (it will take) two to three years to reach those levels again.” Indian luxurious automobile market, comprising high 5 gamers — Mercedes, BMW, Audi, JLR and Volvo, is estimated to have bought almost 35,500 models in 2019, down from 40,340 models in 2018.

Dhillon stated all the automotive sector has taken a giant hit this yr and “even last year for the luxury segment was also a degrowth year”.

So when it comes to quantity progress, it’ll begin from subsequent yr, he stated.

“We are not coming back to the best of our years, but we are happy that we are moving in a positive direction,” Dhillon stated, whereas exuding confidence concerning the long-term potential of Indian car market.

Stating that motorisation stage in India could be very low, he stated, “We have less than 30 cars for every 1,000 people as compared to other developing or developed countries where it is somewhere as high as 800 in China…We still have a lot of motorisation to happen.” “What India offers at this point of time is a lot of potential for the long term. Economy for sure is going down, but every estimate shows that there will be a V-shaped recovery in 2021 on the base of a lower economic activity this year, which will definitely improve the market,” Dhillon stated.

The different factor, he stated, is the demographics of India with 65 per cent of inhabitants below the age of 35 years.

“These are those individuals who are ready to experiment, these are those individuals who do not believe in only saving but also in spending, these are those individuals who want to experience things other than put the money in their bank accounts.

“So for them, experience matters more than ownership of goods. These are all positive things, which we think will continue to give positive energy to the automotive energy,” Dhillon added.