Auto dealer outlook in India remains pessimistic, says Sewells

Automobile dealers across all vehicle categories in India continue to remain pessimistic for a second consecutive quarter, according to the Sewells Group Automotive Dealer Confidence Index (ADCI) Survey, results of which were released today.

The survey conducted at the beginning of April covered 175 dealers from 121 cities, representing 21 brands across passenger cars, two-wheelers and commercial vehicle categories. The key highlights from the survey are as follows:

- The passenger car index has slipped into negative territory after staying positive at the end of the last two quarters. The index dropped to -2 from +9 at the end of the previous quarter, indicating a substantial negative shift in sentiment.

- The two-wheeler index has fallen for the second quarter in a row, indicating the lack of optimism amongst two-wheeler dealers. The index declined from +10 at the end of October-December 2014 quarter to 0 at the end of Jan-Mar 2015 quarter.

- The commercial vehicle index stood at -44, which is an all-time low. The previous low for the commercial vehicle index was -38 at the end of April-June 2014 quarter.

- Overall, the ADCI at the end of January-March quarter of 2015 dropped to -3 from +7 at the end of October-December 2014 indicating a shift in sentiments from positive to negative amongst dealers surveyed.

Jayesh Jagasia, CEO of Sewells Group India, said, “The level of dealer confidence at the end of 2014-15, indicated by the Sewells Group Automotive Dealer Confidence Index, paints a sobering picture of retail sales for the next six months. It is likely that the current levels of confidence have been impacted by unseasonal rains and weakening rural demand. The lack of meaningful policy changes that impact the auto industry positively is also a likely roadblock in improving dealer sentiment.”