On the outlook, FADA said, with the ease of supply, the PV segment will surely witness the best celebrations (Navratri and Diwali) in the last decade so far.
On the outlook, FADA said, with the ease of supply, the PV segment will surely witness the best celebrations (Navratri and Diwali) in the last decade so far.
Automobile dealers’ body FADA on Thursday said that retail sales of automobiles in India grew by 8.31% in August this year on account of increase in registration of vehicles across all major segments.
As per the data released by Federation of Automobile Dealers Associations (FADA), total vehicle retail sales in the country stood at 15,21,490 units last month as compared to 14,04,704 units in August 2021.
Passenger Vehicles (PV) retail sales stood at 2,74,448 units as against 2,57,672 units in the year-ago month, a growth of 6.51%.
Retail sales of two wheelers (2W) also increased by 8.52% to 10,74,266 units in August 2022 as against 9,89,969 units in the same month last year.
FADA said the three-wheeler (3W) segment witnessed the highest growth rate last month, registering a growth of 83.14% at 56,313 units from 30,748 units in the same month a year ago.
Commercial vehicles (CVs) also witnessed a strong growth of 24.12 per cent at 67,158 units as against 54,107 units in the year-ago month.
FADA President Manish Raj Singhania said the August retail sales were not encouraging nor as per the expectations of the dealers, who had expected a good start to the festive season with Ganesh Chaturthi.
“When compared to August 2019, a pre-Covid month, overall vehicle retail declined by 7%. PV performed well with a growth of 41%, CVs also turned positive by a growth of 6% and thus COVID-19 Came out of the blues. All other segments were in the red with 2W, 3W and tractors falling 16%, 1% and 7% respectively,” he said.
Mr Singhania said that though the 2W segment grew 8.5% on a year-on-year basis last month, “it is facing the COVID blues due to poor performance of India (Rural India) and is still facing 2019 levels.” not above”.
He said, “With the hike in prices, this has put the 2W product out of reach of most entry-level customers. With an uncertain monsoon, crop yields have been low and flood-like conditions have restricted the movement of customers. ,” They said.
On the other hand, the PV segment remains strong as demand for all sub-categories, except entry-level vehicles, remains strong.
“It is also aided by the new feature-rich launches that OEMs have been doing over the past few months. Semiconductor shortage is slowly becoming a chronic, with vehicle availability certainly improving, but with higher feature-rich variants The waiting period remains due to high demand in the country,” Mr Singhania said.
Similarly, he added that the CV segment is also witnessing a pick-up in post-monsoon economic activity.
The government’s infrastructure push, new launches by OEMs and better conversion of fleet operations have kept the segment in the green, he said, adding, “The passenger carrier segment also showed good demand due to increased purchases from educational institutions. Used to be”.
3W Space has now equaled 2019 sales for the first time ever. Electrification is also highest in this category, with e-rickshaws leading the way.
Mr Singhania said, “There is a clear indication that customers are now preferring electric vehicles over Internal Combustion Engine (ICE) vehicles as ICE 3W is witnessing double-digit decline as compared to pre-Covid levels. “
On the outlook, FADA said, with the ease of supply, the PV segment will surely witness the best celebrations (Navratri and Diwali) in the last decade so far.
“Also, if vehicle prices remain stable and there are no further health hazards, we may see an uptick in the much-anticipated 2W space, which has not shown the necessary growth since the last festivals.” While Onam and Navratri fall in September, the month also has a 15-day period of Shradh, which is generally considered an inauspicious period for buying a vehicle.