Vehicle sales fell by over 5 pc in Sept

New Delhi : The total vehicle sales fell by 5.27 per cent in September, 2021 as compared to September 2019 (a regular pre-Covid month), while overall retail sales fell by 13.50 per cent, auto dealers’ body FADA said on Thursday.

In a statement, FADA President, Vinkesh Gulati said, “Auto retail in the month of September has taken a pause as overall sales were down by five per cent. During the 1st half of this financial year, while the overall retails were up by 35 per cent, the same was down by 29 per cent when compared to 2019, a pre-covid year.

“On a long term basis, except tractors which grew by 19 per cent and PV which has almost reached pre-covid levels, all the other segments were in red.’

According to FADA, on a year-on-year basis, the three wheeler sales were up by 51 per cent. While private vehicles registered an increase by 16 per cent, commercial vehicles were up by 47 per cent.

Two wheeler and tractors sales fell by 12 per cent and 24 per cent respectively.

With the first half of financial year 21-22 coming to an end, total retails grew by 35 per cent a year-on-year basis with the highest growth seen in the Commercial vehicle segment at 127 per cent.

When compared to 2019, a pre-covid year, overall retails were down by 29 per cent. Except tractors which had grown by 19 per cent, all the other categories continued to be in red.

The FADA urged all two wheeler Original Equipment Manufacturers (OEMs) to announce special schemes for demand revival in the entry level two wheeler (below 125 cc) segment as the same continued to be a spoilsport.

The full-blown semiconductor crises continued further and showed its impact on private vehicles, it said.

‘The two wheeler category continues to play spoilsport as the entry level segment is yet to witness healthy growth. This segment’s performance is now becoming critical for the overall two wheeler to come back on the path of recovery as dealer inventory rises to 30-35 days in anticipation of a good festive season. Semiconductor shortage has also started impacting the 150+ cc segment, the auto dealers’ body said.

In its outlook, the FADA said with India entering the 42 days festive period, the near term outlook for this year’s festive season would be a mixed bag.

‘While Dealers have increased their inventory in the two wheeler category, private vehicles inventory is at the lowest during this FY due to the ongoing semiconductor crises,’ it said.

‘The chip shortage looks less likely to ease within the next two quarters. As a result, private vehicle sales are likely to stagnate going ahead even though OEMs are coming ahead with new launches to keep the customer excited. With skyrocketing fuel prices and a drop in purchasing power, entry level customers in rural India are keeping themselves away from fulfilling their mobility needs,’ it added.

‘India’s vaccination drive has reached a remarkable momentum. This coupled with a less likelihood of 3rd wave in near future and offices and educational institutions opening up in a phased manner, we anticipate a marginal recovery process to begin in the 2W space. FADA hence requests all 2W OEMs to roll out special promotions schemes so that it can springboard 2W retails for a faster recovery,’ the FADA said.

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