November 2021 car retail down 19%, semiconductor crisis continues to affect deliveries: FADA

FADA states that two-wheeler sales have not shown momentum even though Diwali and wedding season fall in the same month

The Federation of Automobile Dealers Associations (FADA) today released vehicle retail data for November 2021, which reveals that total vehicle retails for last month decreases by 2.7 percent on a year-on-year basis. When compared to November 2019 (a pre-covid month), overall retails continue

to fall by 20 percent. The three-wheeler and commercial vehicle categories were up by 67 percent and 13 percent, while two-wheelers, passenger vehicles and tractors fell by 1 percent, 19 percent and 9 percent, respectively (YoY basis).

The federation states that two-wheeler sales have not shown momentum even though Diwali and wedding season fall in the same month. Moreover, the semiconductor crises continues to affect PV sales as despite huge bookings and the supply issues continue to result in long waiting periods.

On the positive side, commercial vehicles lead by M&HCV continues to show growth over last year (on low base). However, it has a long way to go when compared to pre-covid times.

“Auto retail for the month of November continued to remain in negative zone despite Diwali as well as marriage season in the same month. The unwanted rains in southern states further spoiled the party. Unless Rural India starts showing signs of strength, overall retails will continue to remain weak,” FADA President Vinkesh Gulati said.

FADA further states that it is hopeful that the chip shortage will ease in times to come and therefore reduce waiting period of vehicles and help in increasing sales. On the two-wheeler front, ‘we once again request all OEMs to announce attractive scheme which can work as a stimulus for growth in sales. FADA additionally requests them to consistently work on a 21- days inventory cycle.’

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