Dealer confidence sees an uptick in India: Sewells Group

The Sewells Group has released the results of its Automotive Dealer Confidence Index (ADCI) survey for India for the quarter ended September 2014.

Launched in May 2014, this is the third edition of the survey. According to the findings, the overall ADCI stood at plus 14, compared with zero at the end of the previous quarter. The index has made significant positive movements over the past six months, indicating the rapidly increasing optimism among automotive dealers, the Sewells Group said in a statement.

The ADCI at the end of July-September quarter of 2014 is calculated on the basis of the survey conducted in the beginning of October 2014. The survey, which covers 23 different brands, received responses from 178 dealers across 98 cities.

The highlights from the survey are summarised as follows:

-  The index for the passenger car segment stood at plus 8 at the end of the July-September quarter as compared to minus 3 at the end of April-June quarter, indicating that dealers are more optimistic about business in the next six months.

- The index for two-wheeler dealers moved from plus 35 at the end of the July-September quarter, compared with plus 18 at the end of April-June quarter, indicating a strengthening of positive dealer sentiment.

- Commercial vehicle dealer sentiment showed a swing of plus 35 points, moving from a moderately pessimistic minus 35 at the end of the April-June quarter to a mildly pessimistic minus 3 at the end of the July-September quarter. This is a significant swing in sentiment, and indicates that CV dealers expect business momentum to pick up in the next few months.

As a result of positive swings in dealer sentiment across all categories, the overall ADCI index at the end of July-September quarter stood at +14, compared with zero at the end of the previous quarter.

India’s passenger vehicle markets recorded a 3 percent increase in September 2014 sales even as passenger cars sales fell by one percent after four straight months of monthly growth. In two-wheelers, bikes and scooters continue to bring in good numbers and on the CV front, there are signs of an uptick.

On the macro-front, the interest rate regime remains high and indications are that the RBI may take a re-look at rates in the first quarter of 2015. Sales in October will give a better picture of sales performance, say experts. The last week saw the first cut in diesel prices in five years but the impact will only be seen in the months to come. Experts believe that discounts on cars will continue.

Photograph: Priyank Chhapwale