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Covid-19: Consumers may prefer own cars over public transport

According to a report by Kotak, car buyers could choose private cars over public transport due to the virus fears.

The study looks at the impact of the SARS virus on consumers after its outbreak in China between November 2002 and July 2003. Due to the outbreak, China's economic growth fell. Once the spread of the disease subsided, buyers in the infected regions chose private cars and two-wheelers over public transport and ride-sharing services due to the fears of being infected by the virus. As a result, in CY2003, China’s auto market grew by ~79% YOY.

While SARS only affected China, Coronavirus has spread all over the world. The report suggests that due to the similarities between the two viruses, consumers might prefer private cars over public transport and cab aggregators. In India, passenger vehicle sales are expected to increase by 6% YOY in FY2021. However, two-wheelers sales are expected to see a single-digit volume decline YOY in FY2021 due to the increase in prices caused by the BS6 emission norms.

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