Auto Industry maybe the one to watch out for in a Post Pandemic World..
News emerging out of China seems to suggest that the Auto Industry maybe one of the positive stories in a Post Covid World. The Auto sector plays a very important role in China’s economy, account for ~10% of its output, and employing ~40-45 Mn people directly or indirectly. According to the China Passenger Car Association, while sales for the month of March were down 36% compared to a year ago, the decline has been consistently moderating week on week ( Week1 - 50 percent, Week 2 - 44 percent and Week 3 - 40 percent). The expectation is that the weekly sales numbers will rebound to pre lockdown level by end of April. In Wuhan, which was the Center of the Covid crisis, dealers are already reporting daily sales at pre lockdown levels. A Feb study by research firm Ipsos shows that in China the willingness to buy a personal automobile has increased to 66%, up from 34% before the outbreak. What could explain the above..and could a similar scenario lay out in India with Car Prices actually going up..
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Holographic Display Solutions - An Emerging Revolution in Retail Advertising.
As digital conquers the advertising pie – Indian advertising industry expected to reach 76000 Cr by end of 2020 at a 11% growth with the digital segment to reach 17000 Cr growing at 27%[1]. This means that digital advertising at 20% of the pie is all set to overtake print (27% of the pie) and TV (39% of the pie) in a few years. While paid search and online videos along with content and affiliate marketing are well known, an equally important and growing subset of digital is display media.
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Pre Owned Cars - The bright spot in the Auto Sector
Amid all the gloom and doom news on sales in the Automobile sector over the past few quarters, one segment which has burnt bright is the Pre Owned Cars one. The Pre Owned Car Market in India is estimated at 24Bn$ (2019) and is expected to grow at a CAGR of 15% over the next 5 years. The Unit Sales fig crossed the 4Mn mark in FY19 and is ~1.3 times the new car fig. For comparison, the pre owned car sales in the US are 2 times the new car sales (~34 Mn compared to 17Mn).
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