The passenger vehicle segment is literally on a roll. While on the whole the September sales numbers are still below pre-Covid levels, passenger vehicles continue to be a strong outperformer along with three-wheelers, as per the latest FADA monthly data.
The September FADA sales numbers highlight a 10 percent year-on-year plus jump in overall vehicle sales to 14,64,001 units from 13,19,647 vehicles. This number is nearly 4 percent below the 2019 September sales levels. However, the passenger vehicle space that’s celebrating an early Diwali. For September, FADA indicates sales totalling to 2,60,556 vehicles, up 9.71 percent from 2,37,502 units last September. What’s striking is this monthly count is more that 44 percent above the 1,80,347 vehicles sold in September 2019.
Commenting on how September PV sales panned out, FADA President, Manish Raj Singhania said, “ Better availability due to easing semi-conductor supply, new launches and feature rich products kept customers glued to dealerships for getting their favourite vehicles during the auspicious period. The waiting period continues to range between 3 months to 24 months especially for SUVs and compact SUVs which have become the absolute choice for today’s customers.”
Three-wheeler and CV sales also indicated a robust positive trend. September three-wheeler sales clocked almost 72 percent growth year -on-year to 63,915 vehicles from 37,172 sold last September. This is over 5 percent above September 2019 level. What’s interesting is that electric vehicles account for a significant bulk of the three-wheelers sold in September. Apart from better availability of vehicles with full range products including alternate fuels, customers have started using public transport and rickshaw service thus fuelling demand in this segment.
The CV segment is up 18.87 percent buoyed by the infra push from the government. As per the latest FADA data, 71,233 CVs were sold compared to 59,927 units sold last year same month. Compared to 2019 levels, the sales are up over 16 percent from what was recorded in September that year. Better availability of vehicles, festivities, bulk fleet purchase also helped this segment shine.
However, the two-wheeler segment continues to remain a relative underperformer. While on a year-on-year basis September sales have clocked 9 percent plus growth to 10,15,702 vehicles from 9,31,654 sold last September, the levels are still below pre-Covid times. Compared to the sales clocked last September, the charts show that numbers are still 14 percent lower.
Speaking about the segment, Singhania added that, “Due to increased input costs, two-wheeler companies raised prices by 5 times in past one year. Apart from this, RBIs fight with inflation saw rate hikes which continued to make vehicle loans expensive. While India is showing revival signs, Bharat is yet to perform. Two-wheelers, especially entry level vehicles, are finding extremely less buyers thus dragging the entire segment.”
FADA however continues to be optimistic based on the trends seen in the festive month, i.e. October. Dealers anticipate this to be the best festive in a decade for PV segment. While semi-conductor supply continues to ease, FADA has requested OEMs to match supply as per the demand so that PV sales can get an aaditional push.
The enquiry level in two-wheeler segment is showing positive movement. Overall auto retail is expected to see higher growth compared to last two festivals but may still lag pre-Covid numbers of October 2019.