COVID-19 second wave washes out automobile demand in Goa

Coronavirus resurgence is pushed Goa’s car and two-wheeler sales in the slow lane once again with even approaching Gudi Padwa festival failing to enthuse auto buyers, reports Shoma Patnaik

COVID-19 second wave is turning out to be nearly as bad for business as the first wave for the Goan automobile market. According to dealers in the state enquiries from customers have tumbled and walk-ins to showrooms are down to a trickle.

With the second wave breaking out close to Gudi Padwa festival when demand for cars and two-wheelers  customarily pick up, dealers said that they have lost on a golden opportunity to increase sales as customer sentiments have turned cold once again.

“All dealers in the state have stocked for the festival.  At this time my showroom should have been buzzing with customers. But where are they? Dealers are eagerly waiting for customers like a wife waits for her husband,” says Vmai Kunkoliencar, managing director, Goa Rajee, the Honda two-wheeler dealership in Margao.

Kunkoliencar’s showroom covers Margao, Ponda, Sanvordem , Canacona and Vasco markets and sells at least  1,000-1200 new scooters for Gudi Padva festival. But this year  he does not expect to reach even 700
scooter sales.

 “By now people have the experience of the first wave but a family minded person will tend to think twice before stepping into a showroom,” he points.

The Honda two-wheeler dealer adds that, in Margoa especially the coronavirus cases are increasing like anything.  “The fear of contacting infection has gone deep in the minds of the people. Customers are not coming out.”

According to Prashant Joshi, president, Goa Automobile Dealers Association (GADA), “The second wave for sure is going to be a setback to automobile demand.  We had reached 80 per cent of pre-COVID sales but the swift spike in cases is cast a haze of uncertainty over full recovery.”

Joshi points out that as against Gudi Padva in 2020, the current year looks better. “During last year Gudi Padva we had no way of opening the showroom due to the lockdown. Comparatively this festival we are in better position,” he says. 

Ashok Sapra, proprietor, Pratik Motors, Yamaha dealer, discloses that,  at his dealership the situation had nearly come back to normal before the second wave struck.

 “Our sales in March were almost back to pre-COVID level and Gudi Padwa festival would have helped us to cross the pandemic crisis. Today we fear going back to square one. Customers who were expected to close the deal during Gudi Padwa have postponed their decision. The hit from second wave is being felt since March 20, 2021,” he says.

Sapra who is also the dealer for Tata Motors, discloses that, within automobiles the second wave has hit two-wheeler purchases in the state more badly than it has four-wheelers.

He points out that, scooter is the common man’s mode of transport. “The average scooter buyer is from the middle class who was badly affected during the 2020 pandemic. Many middle class Goans lost their jobs last year. With this second wave they have turned cautious and prefer to hold on to their money instead of spending,” says Sapra.

Goan automobile dealers said that, the adverse impact of the second wave of coronavirus could have been avoided if the government had restricted crowds without stopping economic activity. They said that, the vaccination process must
be expedited.

“The tikka utsav as suggested by the Chief Minister is a good thing.  It must also cover 18+ youth. With just 15.5 lakh population the state can vaccinate the 18+ populace in seven days. We must try it and the government must seek central permission for the experiment,” says Kunkoliencar.

The GADA has already sent out an advisory to member- dealers to vaccinate all employees. “Unfortunately the Whats App university has become hyperactive in spreading fake news on the adverse effect of the COVID vaccine. It is making people fearful of getting inoculated,” rues Joshi.

Car and two-wheeler registration fell across Goa due to the pandemic. Consumer spending which is the driving force behind automobile demand fell because uncertainty over income. Information disclosed by the state department of transport shows that, during 2020-21 (until December 2020,) registration of two-wheelers was only 18463 motor cycles and scooters as against 40,793 motor cycles and scooters
in 2019-20.

In case of private cars and jeeps, registration until December 2020, was 7900 four-wheelers vis-à-vis 13,677 four wheelers for 2019-20. According to Goan automobile dealers for the first four months of 2020-21, the market for automobiles crashed because of lockdowns. The opening up of business occurred only from July onwards before business picked up in the last quarter of 2020. Overall the previous financial year witnessed good sales only during the months of October- December 2020.

For Goan dealers the pandemic impact on automobile sales is worrying because it is on top of sustained period of sluggishness. In fact for the past three years registrations of vehicles is decreasing in the state from 76,577 (motor cycles, scooters, cars and jeeps) in 2017-18, to 71976 vehicles in 2018-19, followed by further 54,470 vehicles
in 2019-20.

The state was always considered to be a thriving market for automobiles. But sustained economic slowdown means that automobile demand has lost its momentum in the state. The ongoing pandemic of which the trajectory is still unknown is another hurdle, said dealers.