Sewells Group ADCI 2014 Q2 Report Launch Press Release 2014

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Sewells Group ADCI 2014 Q2 Report Launch Press Release 2014

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Sewells Group ADCI 2014 Q2 Report Launch Press Release 2014

  1. 1. PRESS RELEASE FOR IMMEDIATE RELEASE IN INDIA Sewells Group Automotive Dealer Confidence Index (ADCI) indicates significant increase in optimism amongst auto dealer fraternity Survey to quantify dealer sentiment shows significant positive swing amongst passenger car and two-wheeler dealers; commercial vehicle dealers continue to maintain a pessimistic outlook Mumbai, 16th July, 2014 Global automotive retail consulting firm, Sewells Group, today released the results of the second edition of the Sewells Group Automotive Dealer Confidence Index (ADCI) survey for India. At the end of the Apr-Jun 2014 quarter, the overall index stood at 0, representing a neutral outlook. This is a substantial swing from the previous quarter’s index, which stood at -20. The swing represents a significant positive movement in the level of optimism of automotive dealers. The Sewells Group ADCI is designed to quantify the sentiment of franchised automotive dealers from across the length and breadth of the country. Participating dealers represent a host of brands across product categories. The quarterly survey aims to track movement in dealer sentiment as a reliable indicator of future sales performance. The index is designed to vary between -100 and +100 where an index score of -100 represents the most pessimistic outlook, and +100 indicates the most optimistic sentiment. The ADCI survey delves into the following areas:  The impact of the current economic scenario on the market, as well as the dealership business  Expected performance of market as well as dealership over the next 6 months  View on current situation of sales, inventory and profit vis-à-vis same period last year  View on current situation of sales, inventory and profit vis-à-vis previous quarter  Expected levels of sales, inventory and profit over the next 6 months  Future view of manpower strength of the business The index for the end of Apr-Jun quarter of 2014 is calculated on the basis of the survey conducted in the first week of July 2014. Responses were received from 126 dealers, across 75 locations, representing 21 different brands.
  2. 2. The key highlights from the survey are as under:  The index for passenger cars moved from -40 at the end of Jan-Mar 2014 quarter, to stand at -3 at the end of Apr-Jun 2014 quarter. This is a substantial positive jump, and indicates a significant positive movement of dealer sentiment in the passenger car category.  The index for two-wheeler dealers moved from 13 at the end of Jan-Mar 2014 quarter to 18 at the end of Apr-Jun 2014 quarter. The movement of the index indicates a slight positive movement of sentiment.  Commercial vehicle dealers continue to remain pessimistic about their business prospects. The index for commercial vehicles falls from -32 at the end of Jan-Mar 2014 quarter to -38 at the end of Apr-Jun 2014 quarter.  The overall index at the end of Apr-Jun 2014 quarter stands at 0, with about 60% of respondents indicating that they expected the business to be profitable in the next 6 months. Managing Partner and CEO of Sewells Group India, Jayesh Jagasia said: “It is interesting to view the movement of the Sewells Group Automotive Dealer Confidence Index (ADCI) in light of the changes in the political environment. For the first time in over two decades, the country has a Government with an absolute majority. The business fraternity expects the Government to jump-start the economy. Automotive dealers – an important and influential part of the country’s business fraternity, expect that an improved economic environment will translate into improved sales performance for the passenger car and two-wheeler categories. Commercial vehicle dealers seem to believe that it will be a while before the impact of these changes is seen on their business, resulting in a continued pessimistic outlook. The ADCI is designed to reliably predict retail sales, and if the index at the end of the Apr-Jun 2014 quarter is any indication, good times are around the corner for the industry.”
  3. 3. About Sewells Group Melbourne-based Sewells Group is a leading provider of dealer development solutions and services to automotive companies across Asia Pacific, Africa & Middle East regions. Sewells Group works closely with leading automotive brands to help enhance retail performance by working on three broad areas of dealer business – demonstrated competence, process efficacy and dealership profitability. About Sewells Group India Sewells Group India is a leading provider of dealer development solutions and services to the automotive industry in India. Sewells Group India works with leading automotive OEMs and helps them build excellence in the network performance space. Sewells Group India’s clients benefit from the company’s cutting-edge intellectual property and tools in the ‘people, process and profit’ of dealership business. For information about this release, and for a copy of the detailed report, please contact: Pooja Pewekar Group Marketing Manager ppewekar@sewellsgroup.com +91 22 67354914 ###

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