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Regular-article-logo Friday, 22 November 2024

Auto sales surge not sustainable

Sector hugely linked to the economy and vice-versa

PTI New Delhi Published 05.10.20, 04:33 AM
Rajeev Chaba

Rajeev Chaba Twitter/ @rajeev_chaba

The recovery seen in auto sales in the past couple of months is not a sustainable one and there is a question mark on how the industry would fare next year as the sector is hugely linked to the economy, according to MG Motor India president and MD Rajeev Chaba.

After the reopening of the economy after lockdown, auto sales have gradually picked up month-on-month since June and gained further momentum with the onset of the festive season in September.

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“We should not think this is a sustainable recovery. This recovery is very tactical because of pent-up demand, lockdown, some shifting from public to private transportation and maybe some very few people who just want to buy cars now because they want to have some feel-good factor," Chaba said.

However, “Sustainable or robust demand depends on the economy. Automotive industry is hugely linked with the economy of the country and vice-versa,” he added.

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