Auto dealers' body FADA said it expects automakers to launch a higher number of models this festive season compared to the last two years. Federation of Automobile Dealers' Association (FADA) president Vinkesh Gulati had termed the 2021 festive season as the "worst" in a decade in terms of the business of its retail partners.

In a talk with PTI, Gulati said this time the demand is "too good", except for the non-electric two-wheeler segment which remains the "biggest stress" on the industry owing to a host of factors.

"If I compare with the last two years, you will find at least double the model launch during the festive season. Moreover, we are seeing a lot of electric vehicles being launched also. So you will find a lot of launches (ahead of the festive season)," Gulati told PTI.

According to him, the car makers in the country have been producing 3 lakh cars per month since February, which is a good sign.

However, most of the new vehicle launches are expected to be in the compact SUV or SUV segment, he said and emphasised that "90 per cent of the launches (will be) driven towards the SUV segment."

Gulati termed the coming 4-5 months as the best for vehicle sales as the festive season in the country falls during this period.

Commercial vehicles should be in green. Besides, the kind of "infrastructure support we are getting from the infrastructure push of the government" is also pushing the segment to the positive side, he added.

According to Gulati, increasing electrification in the three-wheeler space is a "positive" for the segment.

He said that the tractor segment is already positive and the monsoon has supported the demand.

"Also, there is a structural shift from the customer side such as customer preference and expectations. The kind of stress that we saw in rural areas owing to the pandemic is also a major issue," he said.

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