The two-wheeler phase continued its underwhelming present in June with retail gross sales of bikes and scooters declining on a sequential foundation resulting from excessive possession and gasoline prices, which have severely impacted demand, significantly in rural areas.
Two-wheeler retail gross sales fell 8.5% month-on-month (m-o-m) to 1,119,096 items in June, information launched by the Federation of Automobile Dealers Associations (FADA) on Tuesday confirmed. Sales in May stood at 1,222,994 items.
“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-wheeler sales at low speed,” stated Vinkesh Gulati, president, FADA.
While cumulative gross sales of two-wheelers stood at 3,536,610 within the June quarter, business specialists imagine that the September quarter might be one other boring interval as individuals might postpone their purchases to the festive season owing to the inauspicious Pitru Paksha (Shradh) interval.
Although comparatively higher semiconductor provide and sturdy demand have given a lift to passenger car (PV) gross sales of late, there was a marginal dip of 0.9% m-o-m to 260,683 items in June from 263,152 items in May.
Due to the semiconductor scarcity, PV manufacturing had slipped to merely 198,128 items in September final 12 months. However, with provide bettering progressively, manufacturing elevated by 50% to 296,841 items in May.
“The PV segment continued to see robust growth. An increase in wholesale clearly shows that semiconductor availability is now getting easier. The waiting period, especially in the SUV segment, continued to remain high. New vehicle launches are seeing robust booking thus reflecting a healthy demand pipeline,” Gulati stated.
The common stock for PVs was within the vary of 15 to twenty days, whereas for two-wheelers it was between 20 and 23 days on the finish of June, based on FADA.
Three-wheeler gross sales jumped 10.9% m-o-m to 46,040 items in June on the again of rising demand from e-commerce companies and intra-city logistics gamers. The business car (CV) phase witnessed an increase of 1.6% m-o-m in gross sales to 67,696 items; additional progress is anticipated amid increased demand from road-freight-intensive sectors and broad-based restoration within the economic system. Sales within the tractor phase remained on the expansion trajectory, rising 9.2% m-o-m to 57,340 items.
Retail gross sales of PVs rose 27%, CVs elevated 3.9% and tractors 40% in June when put next with the identical month in 2019, a non-pandemic 12 months. In distinction, two-wheeler and three-wheeler gross sales declined 16.4% and 5.7%, respectively.
The Russia-Ukraine battle has elevated inflationary stress the world over, Gulati stated, including that previously few months, costs of virtually all important gadgets have moved northwards, thereby placing stress on the widespread man’s family funds and lowering his disposable revenue.
“Additionally, the high fuel prices have had a spillover effect on transportation and made it expensive. This will have a negative effect on entry-level PV as well as two-wheeler segments, which are generally dominated by first-time buyers,” he stated.
Gulati stated whereas the convenience in availability of semiconductors will see elevated provide, particularly within the PV phase, and a discount in ready intervals, auto retail will enter the festive season on a superb word if rural India stabilises.
Source: www.financialexpress.com”