New Delhi, July 10 -- As automobile sales recovered from record lows in April and May, one question on everyone's mind is how sustainable will this recovery be. Note that the recovery is being driven by pent-up demand and first-time buyers looking for personal mobility options, in view of the risks involved with public transportation.
Sales from upgradation and replacement of older vehicles were low, said Dolat Capital Market Pvt. Ltd after interacting with auto dealers and distributors. "Exchange of vehicles has reduced drastically (to 30-35% of the normal level) with most sales coming from first-time buyers," Dolat analysts said in a note on the two-wheeler segment.
The scenario is similar in passenger vehicles. Enquiries improved after...