Chennai: The Federation of Automobile Dealers Associations has said automobile sector is slowly recovering in the country.
Commenting on how July performed, FADA president, Ashish Harsharaj Kale said, “As India continues to open up, the month of July saw better registrations compared to June, though on a YoY basis auto sector recovery is yet to be seen anywhere near normal. Current market conditions are still not indicative of the actual demand situation on an all India level and retails continue to de-grow in huge double digit despite the low base of last year.”
Rural market though continues to show strong growth as monsoon continues its good spell. Tractor, small commercial vehicles and motorcycle sales positively impacted with the monsoon progress and spread.
“Banks and NBFCs though flush with high liquidity are still having a cautious approach towards funding auto retail affecting the Demand revival especially in segments of CV, 3W and 2W,” he added.