New Car Launches Provide Push As Sales See Stellar Growth In June: FADA
The data revealed a strong YoY growth across all segments; compared to last year, total retail sales for June has been higher by 27 per cent
The Federation of Automobile Dealers Association (FADA) on Tuesday released the vehicle retail data for June. The data revealed a strong year-on-year (YoY) growth across all segments. Compared to last year, total retail sales for June has been higher by 27 per cent.
Vinkesh Gulati, FADA president, said, "New vehicle launches are seeing robust booking thus reflecting healthy demand pipeline."
The FADA statement showed that on YoY basis, total vehicle retail for the month of June increased by 27 per cent. All categories were in the green. Sales of two-wheeler, three-wheelers, passenger vehicles, tractors, and commercial vehicles were up by 20 per cent, 212 per cent, 40 per cent, 10 per cent, and 89 per cent, respectively.
The release revealed though few categories are consistently showing recovery, full recovery is yet to be seen when compared to pre-Covid times.
When matched with June’19, total vehicle retail was down by -9 per cent. However, PV and tractor sales continued to show growth by rising 27 per cent and 40 per cent. For the first time, CV also increased by 4 per cent. The two categories which continue to underperform were two-wheelers and three-wheelers that de-grew by -16 per cent and -6 per cent, respectively.
Overall sales in Q1’22 grew by 64 per cent when compared to Q1’21 which saw intermittent lockdowns, but de-grew by -8 per cent when compared to Q1’19. Only PV and Tractor were in the positive for the entire quarter.
FADA said that increased wholesale reflects ease in semi-conductor availability thus reducing supply side constraints going ahead. High inflationary pressure becomes a cause of major concern.
Gulati said, “Auto retail for June continued to show its positive run when compared YoY with June’21, a month which continued to face the brunt of Covid. Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept two-wheeler sales at low speed. In the three-wheeler category, a major shift has happened in electric category. Apart from this, permit issues and frequent price increase remained the biggest dampeners,” while adding, “The PV segment continued to see robust growth. An increase in wholesale clearly shows that semiconductor availability is now getting easier. Waiting period, especially in the compact SUV and SUV segment continued to remain high.”
The CV segment showed strength for the first time as it grew by 4 per cent when compared to June’19, a pre-Covid month. Bus segment along with LCVs are showing good traction, Gulati said.
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