Releasing the vehicle registrations data, the Federation of Automobile Dealers Associations (FADA) recently revealed that the total vehicle retail for the month of August 2021 has risen by 14.48 percent on a YoY basis. Compared to August 2019 (a regular pre-COVID month), retails are still down by 14.75 percent. On a YoY basis, all categories were in the green with two-wheelers up by 6.66 percent, three-wheelers up by 79.70 percent, passenger vehicles up by 38.71 percent, tractors up by 5.50 percent and commercial vehicles up by 97.94 percent.
Both tractors, as well as PVs, continue to see robust demand as they grew by 35.98 percent and 31.67 percent when compared to August 2019, a pre-COVID month.
Inventory at the end of July’21
Average inventory for Passenger Vehicles ranges from 25-30 days
Average inventory for Two – Wheelers ranges from 20-25 days
Liquidity
40.6% Dealers rated it as neutral
37.8% Dealers rated it as good
21.7% Dealers rated it as bad
Upcoming Festive Season
44.9% Dealers rated it as Good
40.4% Dealers rated it as Neutral
14.6% Dealers rated it as Bad
Also read: Global light vehicle production could reach 83 million units in 2021 – Anil Kumar, SEG Automotive India
“Customers continued to fight financial battle due to Covid related health issues and hence remained away from dealerships resulting in low inquiry and lower sales. This has its impact on the entry level segment which continues to face the biggest brunt,” FADA President Vinkesh Gulati said.
“CV segment continues to witness some recovery coming back majorly due to the low base of last year. While SCV’s had already shown good recovery due to the intracity goods movement, M&HCVs are picking up pace only in specific geographies where the Government is rolling out infrastructure projects. Acquisition cost post-BS-6 implementation along with financers keeping away from the segment and high fuel cost continues to restrict recovery in CV demand.”
