Sharp drop in enquiries, fresh bookings of vehicles

Bhubaneswar: The automobile sector in the state is bracing for a short-term slowdown as panic buying of fuel across the state begins to burden consumer sentiment with dealers in Bhubaneswar and Cuttack reporting a sharp drop in enquiries and fresh bookings over the past few days.

Experts said uncertainty over fuel availability and rising queues at petrol pumps have prompted buyers, especially first-time owners of cars and two-wheelers, to think deeply on their purchase decisions. The fear and anxiety among buyers are likely to impact the sector in the near future, they added.

“Over the last three to four days, walk-ins have fallen by nearly 30 to 40%. Many potential buyers are adopting a wait-and-watch approach due to the prevailing fuel situation,” said Ajay Agarwal, a dealer associated with a leading passenger car brand in Bhubaneswar.

Two-wheeler dealerships, which largely depend on daily commuters and first-time buyers, appear to be the worst hit. “Footfall in our showroom has decreased this week. Customers are hesitant to invest in a new vehicle when fuel availability itself looks uncertain,” said Mahendra Sahoo, salesperson at a two-wheeler showroom in the city.

According to sources, dealerships have reported a 30 to 40% drop in enquiries in the past few days, bookings have come down by nearly one-third in entry-level segments, motorbike sales are seeing the sharpest decline in footfall and commercial vehicle enquiries have slowed down significantly amid operational concerns.

Experts say that the impact could deepen if the situation persists for another week. “The automobile sector is closely linked to consumer confidence. Panic buying of fuel creates a perception of scarcity, which in turn discourages spending like vehicle purchases,” said auto industry analyst Ritesh Das.

Commercial vehicle operators and small business owners are also holding back. “If diesel supply is uncertain, why would I invest in a new goods vehicle? After depending on rented transport, I finally decided to buy a vehicle of my own, but now I am rethinking my decision,” Prakash Puhan, a vegetable vendor at Bomikhal, said.

Industry insiders in the meantime remained optimistic about the slowdown, considering it to be a temporary one. “Once fuel supply normalises and panic subsides, it is likely that there will be a rise or at least normal demand. The fundamentals of the market remain strong,” Das added.