February outlook for automobile industry leans toward cautious optimism with growth potential: FADA
The Federation of Automobile Dealers Associations (FADA) has said that the February outlook for the automobile industry leans toward cautious optimism with growth potential. It said though in January, the industry logged good growth, there are challenges and market complexities as regards the prospects for the current month.
The FADA said the anticipation of upcoming elections may make customers cautious which may affect the purchasing decisions across the vehicle segments. That apart, there are constraints on the vehicle supply, finance and liquidity sides. Persistent supply bottlenecks for specific high-demand models present a risk factor for consistent growth across two-wheeler, commercial vehicle and passenger vehicle segments, highlighting the need for OEM optimization of production lines.
It further said fluctuating market liquidity and the potential for tighter financing in the commercial vehicle (CV) sector require a focus on consumer financing solutions to support overall sales. On an overall basis, the Industry Outlook leans towards cautious optimism but shows growth potential in the near term. However, the year 2024 began on a good note for the automobile industry with all the segments -barring the CV segment logging promising growth.
