Auto retail gross sales proceed to keep up constructive momentum within the month of June as the overall automobile registered within the final month elevated by 27% to fifteen,50,855 models in comparison with June 2021, as per the info launched by the Federation of Automobile Dealers Associations (FADA) primarily based on Vahan.
According to knowledge, all classes posted double-digit development. Two-wheelers, three-wheelers, passenger automobiles, tractors and industrial automobiles had been up by 20%, 212%, 40%, 10% and 89% respectively.
As per FADA, although few classes are persistently displaying restoration, full restoration is but to be witnessed when in comparison with pre-covid occasions. However, in comparison with June’19, complete automobile retail was down by 9%. Passenger automobiles and tractors continued to indicate development by rising 27% and 40%.
For the primary time, industrial automobiles additionally elevated by 4%. The two classes which proceed to underperform had been two-wheelers and three-wheelers which fell by 16% and 6% respectively.
Segments | June 22 | June 21 | YoY % |
Two-wheeler | 11,19,096 | 9,30,825 | 20.23% |
Three-wheeler | 46,040 | 14,735 | 212.45% |
Passenger automobile | 2,60,683 | 1,85,998 | 40.15% |
Tractor | 57,340 | 52,289 | 9.66% |
Commercial automobile | 67,696 | 35,810 | 89.04% |
Total | 15,50,855 | 12,19,657 | 27.16% |
Vinkesh Gulati, President, FADA mentioned, “Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept two wheelers sales at low speed.”
“In the three wheeler category, a major shift has happened in the electric category. Apart from this, permit issues and frequent price increase remained the biggest dampeners. The passenger vehicle segment continued to see robust growth. An increase in wholesale sales clearly shows that semiconductor availability is now getting easier. Waiting periods, especially in the compact SUV and SUV segment, continued to remain high. New vehicle launches are seeing robust booking thus reflecting a healthy demand pipeline.” he added.
Gulati additionally identified that the CV phase confirmed energy for the primary time because it grew by 4% when in comparison with June’19, a pre covid month. Bus phase together with LCVs are displaying good traction.
Auto Retail Sales in India: Outlook
The Russia – Ukraine disaster has elevated inflationary stress the world over. RBI Governor in the course of the latest Monetary Policy assembly has additionally flagged excessive inflation as a serious reason for concern.
In the previous few months, costs of just about all important objects have moved northwards, thereby placing stress on the frequent man’s family price range and thus lowering his disposable earnings.
Additionally, the excessive gas costs have had a spillover impact on transportation and made it costly. This may have a detrimental impact on entry-level PV in addition to the 2W phase which is mostly dominated by first-time consumers.
On the opposite hand, ease in availability of semiconductors will see elevated provide, particularly within the PV phase and thus cut back the ready interval. If Rural India stabilizes, Auto retail will enter the festive season on a very good be aware.
Source: www.financialexpress.com”