The Federation of Automobile Dealers Associations (FADA) today released Monthly Vehicle Registration Data for March 2021. Throwing light on sales performance numbers of various vehicle segments, FADA President Vinkesh Gulati explains that auto registrations for the month of March witnessed a double-digit fall to the tune of -28.64% YoY, in spite of seven days of lockdown last year. Tractors and Passenger Vehicles were the only 2 categories that saw healthy double-digit growth.
This growth can be associated with multiple factors like a low base of last year, the transition from BS-4 to BS-6 and India going under total lockdown. The global shortage of wafers which is an input for semiconductors continued to linger around and kept the PV waiting period as high as 7 months. According to FADA Survey, 47% of PV dealers said that they lost more than 20% of sales due to supply-side constraints.
Tractors continued its dream run as rural incomes saw improvements after successive monsoons and good rabi produce. If experts are to be believed, India will witness a normal monsoon for the 3rd year in a row. This will further see tractors performing well in FY 21-22.
According to Pew Research, financial woes brought by Covid-19 have pushed about 32 million Indians out of the middle class, undoing years of economic gains. This had its impact on 2-wheelers as it saw one of its steepest de-growth in the last few months. This coupled with high fuel prices and price increase acted as a double whammy. It not only created havoc in entry-level customers’ minds but also kept them away from visiting showrooms.
The 3-wheeler marketing is witnessing a tactical shift from ICE to EV’s. While prices of vehicles are increasing due to BS-6 and metals prices, customers coming from the lower-income category are not able to re-pay EMI’s due to poor income. This coupled with social distancing norms and educational institutions still closed is keeping riders away.
Commercial vehicles continued to degrow on a YoY basis. High BS-6 prices, low finance availability, repayment pressure due to the moratorium period getting over, were the few reasons for non-performance. The category showed growth in some markets/subcategories where Government Infrastructure spending has begun. Bus segment continued to suffer due to ongoing Pandemic.”
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