Auto + Aviation
Automobile

Maruti, Hyundai, et al. have a foggy view on demand. The way out: a tweak in the forecasting method

Maruti, Hyundai, et al. have a foggy view on demand. The way out: a tweak in the forecasting method
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A Maruti Suzuki car showroom in New Delhi.

Synopsis

Automakers will have to be more innovative in terms of demand forecasts. Use of a scenario-based forecasting methodology for the next few quarters could help. Time-series forecasts, based on historical data, won’t work in these uncertain times. Every associated element of the business — from production to sales, and logistics to component supply — needs to adopt a flexible approach.

By
13 mins read,
A long pause. Some deep frowning. A few jottings on a blank sheet. A shake of the head. And finally, “Sorry, can’t give you an exact number.” That’s mostly the sequence these days when you meet auto-industry executives and ask them how they see the demand scenario panning out in the next six-eight months. Most of them seem reluctant to put a finger on specific numbers. For them, it’s one month at a time right now. That’s a stark departure from
( Originally published on Jun 13, 2020 )

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