The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for January 2022, which shows that on a YoY basis, total vehicle retail for last month decreased by 10.70 percent and 18 percent when compared to January 2020 (a regular pre-covid month). On a YoY basis, 3W and CV were up by 30 percent and 20.5 percent. In terms of 2W, PV and tractors, retail dropped by 13 percent, 10 percent and 10 percent, respectively.
In its latest press statement, FADA also notes that the non-availability of passenger vehicles due to semi-conductor shortage continues to play spoilsport.
While CV and especially HCVs continue to perform well in pockets, 2W continues to show weak performance due to rural India remaining in distress. PV inventory continues to remain at historic low of 8-10 days while 2W inventory reduces from alarming levels to 25-30 days, the statement added.
“Auto retails weak performance of -18.4 percent compared to January’20 (a pre-covid month) continues to show that India is yet to recover from the covid effect which gripped the world 2 years ago,” FADA President Vinkesh Gulati said.
“In spite of good demand, Passenger Vehicle continues to face the brunt of semi-conductor shortage resulting in void of a healthy inventory. Coming to 2-Wheeler category, the rural distress coupled with price rise and omicron wave played a villain’s role for this segment. With the revival in economy, CV segment continues to show YoY growth especially in HCV category. With increased infrastructure spending by Central as well as State Governments, overall CV segment remains in momentum. In fact, 55 percent dealers in our internal survey said that they lost 10+ percent sales due to the Omicron wave.”
As India gets back on its feet post the third wave of Covid, FADA expects that Auto Retail will slowly turn positive. Semi-conductor shortage is also showing some signs of easing as many PV OEMs assure of better dispatch. The association states that vehicle availability should improve going further.
