Buying a new car? Wait might get longer for your favourite car

The Indian automobile industry is witnessing a V-shaped recovery post-pandemic.  If we look at the passenger car segment, retail sales have seen a rise to 2,81,666 units. Showroom sales are seeing an increase on monthly basis. The data in retail sales also indicate better than expected recovery on a sequential basis because of increased demand in rural and semi-urban markets, recovery in metro cities, and a shift in customer preference towards personal transport amid the covid pandemic.

But, consumers are experiencing the highest waiting period to take delivery of their cars because of the difference between supply and demand. Also, automakers are struggling to meet the demand due to shortages in certain key components of the vehicles. Inventories are improving but still not able to meet the demand.

Buyers usually get the keys within 40-45 days, but in the current situation where there is gap in supply and demand, the waiting period can be as long as nine months in a few popular segments, says Vinkesh Gulati, president of the Federation of Automobile Dealers Associations. Supply-side issues continue, he said.

After speaking to Delhi and Mumbai dealers, it can be seen that this is the highest ever demand-supply mismatch showing waiting periods which have been never before. The average waiting period for a popular vehicle is three-four months and for new launches  two-four months.

Market leader Maruti’s waiting period for Swift is up to five months whereas Ertiga, the multi-purpose vehicle, has a waiting period of six-eight months. Brezza and Baleno have also seen a rise to four-six weeks for being on road.

Hyundai’s Creta is currently the best-selling SUV in the Indian market and was the highest-selling vehicle for Hyundai in January 2021. It is seeing a waiting period of seven

months.

Mahindra’s Thar has a waiting period of up to nine months. The four-wheeler is not only an absolute hit in off-road track record but also a better urban vehicle, as compared to its previous model.

Others like Kia Motors, Nissan Motors India and Toyota is also having 5, 8 and 2 months waiting period even when there is no festival or special occasion to give boost to the demand

The best-selling products of many automakers have seen demand recover much better than expected. Around 15-20% of consumers are making a switch or cancelation due to the long wait for their choice comments Mr. Gulati.

Disclaimer: The waiting periods mentioned are as per the date this article was published and may change with time. Also, these waiting periods may differ with place and dealership or both.