Majority of two-wheeler dealers yet to register themselves as MSMEs: Survey
The survey released by CRISIL also revealed that two-wheeler dealers expected the government to cut GST rates and take policy measures to boost consumption.
While a large number of commercial and passenger vehicles have registered themselves as micro, small and medium enterprises (MSMEs), the two-wheeler segment is yet to report a breakthrough in this direction, according to a survey released by CRISIL.
The survey titled 'Auto dealers upbeat despite second wave,' further stated that most of the dealers (76 percent) are not aware of the various credit schemes available for MSMEs and have only availed moratorium extension till now.
They have to be made aware of various schemes to enable them to access additional credit facilities, the survey revealed.
It further highlighted that in the two-wheeler category, only 33 percent of MSMEs are registered whereas in the commercial and passenger vehicles categories, the numbers are relatively lower.
The survey also noted some of the reactions from the respondents on key government interventions and policies. It revealed that the respondents expected the government to cut the Goods and Services Tax rates and take policy measures to boost consumption — for which there weren't any specific measures announced for this industry in the Union Budget 2021-2022.
The survey claims that respondents, especially those belonging to the passenger and commercial vehicle pools, were happy with the scrappage policy, terming it as a "positive move." However, what remains a cause of concern is that the fact it did not boost demand due to clarity on its implementation and limited incentives.
The COVID-19 pandemic brought the entire world to a standstill. Businesses reported losses and sales were down by at least 30 percent, barring a few sectors. COVID-19 also saw employee welfare and hygiene costs go up.
However, 93 percent of the respondents of this survey do not plan to exit automobile dealerships operational within their group despite the difficulties posed by the pandemic.
Edited by Kanishk Singh