Auto retail gross sales in India appear to be on a constant progress monitor when one seems to be at any phase on YoY foundation and even MoM foundation. But the bottom actuality is that there nonetheless exists strain on the two-wheeler and the IC-three-wheeler phase. The segments which have pulled gross sales down for the general automotive restoration and now additionally develop into a problem for the automotive business.
In Q1 FY2023, the general automotive gross sales got here at 48,32,955 models throughout two-, three-, four-wheelers, tractors and business autos. This translated to a progress of 64 per cent and 206 per cent over the identical interval in FY2022 and FY2021 respectively. But in comparison with Q1 FY2020, a pre-covid interval, the gross sales have been down 8 per cent.
It is attention-grabbing to notice that whereas the optimistic momentum may be seen within the quarter because of a low-base as a result of Covid, the passenger automobile and tractor phase appear to be within the optimistic even in comparison with FY2020, a pre-Covid period.
For the passenger automobile phase, because of a bunch of product launches particularly catering to the premium phase of the market the demand has been fairly sturdy. In truth, a number of in style fashions are seeing a supply ready time starting from few weeks to even a yr and extra.
With gross sales of 1,58,169 tractors, the agricultural phase continues to carry out properly and drive momentum.
In the business automobile phase, there’s a pick-up in demand, particularly within the M&HCV phase, led by progress in infrastructure initiatives throughout the nation.
Coming to the two-wheeler phase, whereas there continues to be demand for premium merchandise, the realm of concern has been the entry-level two-wheelers, which proceed to make up for the majority of volumes for the general automotive business.
Speaking to Express Mobility, Vinkesh Gulati, President, Federation of Automobile Dealers Association (FADA) shares that the “Q1 of FY2023 looked better, especially for the passenger vehicle, tractor and improved demand in the CV segment. The M&HCV segment also started picking up pace, this was led by the growth in infrastructure projects across the country. On the other hand, while the three-wheeler segment has seen low sales, there has been an uptick in demand for electric three-wheelers, which is now contributing a significant percentage in the overall sales.”
He says that the business is witnessing improved demand within the electrical three-wheeler phase. “But the major area of concern is the below expectation recovery in the two-wheeler segment, especially the entry-level. Multiple factors have affected recovery in the entry-level two-wheeler segment. Lack of aggression from OEMs, hardly any new product launches, hesitancy among consumers to invest and own an asset, inflation as well as the increase in acquisition cost for entry-level products are some of the major factors affecting demand. We don’t see the situation improving for two-wheeler segment at least for a year,” shares Gulati.
Samkit Shah, Director, Jitendra Motors, a Nashik-based automotive supplier says that for Q1 FY2023, the retail gross sales have “kicked-off on a strong note, given the low-base volume of Q1 FY2022.”
He says that within the passenger automobile phase the problem was in regards to the availability of merchandise. But the availability from OEMs is bettering by every passing month.
While Gulati maintains a cautious view on the demand bettering in Q2 as he “does not see much of improvement as the month-on-month growth starts becoming slow in the July-September period. The festive season is the period when we see demand improving.”
Festive season could usher in demand
Shah maintains an optimistic view stating that with the agricultural sentiments being optimistic, the expectation of a standard monsoon, and the pent-up demand coming into play the demand for private mobility will proceed to develop. “I expect the M&HCV segment to outpace other segments in FY2023, followed by growth in the tractor, passenger vehicle, and two-wheeler segments.”
In truth, it appears there’s a unanimous expectation of the passenger automobile phase to report a file yr this fiscal.
Category | Q1 FY ’23 | Q1 FY’22 | Q1 FY’21 | Q1 FY’20 | Change YoY in % (in comparison with FY ’22) |
Change YoY in % (in comparison with FY ’21) |
Change YoY in % (in comparison with FY ’20) |
Two-wheelers | 35,38,718 | 22,07,324 | 12,75,708 | 40,97,089 | 60.32% | 177.39% | -13.63% |
Three-wheelers | 1,29,944 | 41,590 | 24,543 | 1,49,013 | 212.44% | 429.45% | -12.80% |
Passenger autos | 7,93,238 | 4,83,163 | 1,82,407 | 6,77,702 | 64.18% | 334.87% | 17.05% |
Tractors | 1,58,169 | 1,07,231 | 61,668 | 1,17,410 | 47.50% | 156.48% | 34.72% |
Commercial autos | 2,12,886 | 1,04,929 | 31,950 | 2,19,189 | 102.89% | 566.31% | -2.88% |
LCV | 1,23,004 | 59,763 | 21,986 | 1,34,108 | 105.82% | 459.46% | -8.28% |
MCV | 13,402 | 6,570 | 1,710 | 13,086 | 103.99% | 683.56% | 2.42% |
HCV | 66,836 | 31,918 | 5,385 | 57,478 | 109.40% | 1141.12% | 16.28% |
Others | 9,643 | 6,678 | 2,868 | 14,518 | 44.41% | 236.23% | -33.58% |
Total | 48,32,955 | 29,44,237 | 15,76,276 | 52,60,403 | 64.15% | 206.61% | -8.13% |
Source: www.financialexpress.com”