The Vahan information contains 91.6 p.c of RTOs (Regional Transport Offices) with the most recent addition being the Andhra Pradesh state, with this now solely Telangana, Madhya Pradesh and Lakshadweep should share their information with Vahan.
Vinkesh Gulati, president, FADA mentioned mentioned, “Indian Auto Industry during May’22 continued its flattish run for the 3rd consecutive month. While YoY comparison with May’21 shows exceptionally healthy growth rate across all categories, it is important to note that both May’21 and May’20 were affected by nation-wide lockdown due to covid thus witnessing. Hence a better comparison will be with May’19 which was a normal pre-covid month. Similar to last month, May’22 when compared to May’19 reveals that auto retail is still not on growth trajectory as overall retails were down by -10%. While PV and Tractors continued its positive run by growing 11% and 33%, 2W, 3W and CV are yet to show any signs of healthy run-rate (compared to pre[1]covid months) as they de-grew by -14%, -19% and 11% respectively.”
He counseled the federal government’s resolution to chop excise obligation on gasoline costs thus decreasing inflation and financial misery. While this can have a optimistic rub-off on sale of autos particularly two-wheeler section, the rise in third celebration insurance coverage premium will act as a deterrer for some.
The section noticed slight enchancment in total gross sales in comparison with April’22. On the opposite hand, the electrical two-wheeler gross sales grew quickly although on low base, FADA states that numerous hearth incidents throughout nearly all EV manufacturers have created a concern within the thoughts of the client. This coupled with provide chain points decreased the e-2W gross sales drastically from final month.
The passenger automobile section which has already surpassed May’19 numbers is witnessing enormous demand. “Dealers are not be able to fulfil the same due to supply side issues. This has not only led to an increase in waiting period (ranging from 3 months to 2 years) but is also keeping the customers frustrated,” revealed Gulati.
He mentioned wholesome reserving and single digit cancellation exhibits that demand might keep put even when regular provide resumes in months to return. In the industrial automobile section, buses are displaying good demand attributable to re-opening of instructional establishments.
Giving his outlook, Gulati mentioned whereas the Russia – Ukraine battle continues to create demand provide mismatch thus delaying the provision of PVs, RBI has warned of extra inflation as the rise in wholesale costs will get handed on to the tip customers. This will lead to a decrease disposable revenue which is able to in the end hamper auto gross sales.
Auto Retail Sales In India
Category | May ’22 | May ’21 | Change (YoY) | May ’20 | May ’19 |
Two-wheeler | 1,222,994 | 410,871 | 198% | 161,276 | 1,420,563 |
Three-wheeler | 41,508 | 5,215 | 696% | 1,895 | 51,446 |
Passenger autos | 263,152 | 86,479 | 204% | 31,951 | 236,215 |
Tractor | 52,487 | 16,623 | 216% | 10,193 | 39,438 |
Commercial automobile | 66,632 | 17,607 | 278% | 1,049 | 75,238 |
LCV | 38,635 | 9,463 | 308% | 694 | 43,267 |
MCV | 3,941 | 918 | 329% | 2 | 5,077 |
HCV | 20,945 | 6,252 | 235% | 22 | 23,931 |
Others | 3,111 | 974 | 219% | 331 | 2,963 |
Total | 1,646,773 | 536,795 | 207% | 206,364 | 1,822,900 |
“RBI’s observation has come at a time when WPI Index rose by record 15.1 percent in the wake of high commodity prices and the impact of the breakdown in supply chains due to the war and the strict lockdown by China. FADA hence continues to remain cautious for any further recovery in auto sales in the near term,” concluded Gulati.
Source: www.financialexpress.com”