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FADA: Auto Sales Up 207% In May 2022, Though Still Below Pre-Covid Times

June 6, 2022
Bharat Times

While there was an increase in numbers as compared to May 2021, overall auto sales were down 10% as compared to pre-Covid May 2019.

By
Jaiveer Mehra
, Updated:

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Total auto sales in May 2022 was still down 10% as compared to pre-Covid May 2019.
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Total auto sales in May 2022 was still down 10% as compared to pre-Covid May 2019.

The Federation of Automobile Dealers Associations (FADA) released the sales numbers for the industry for May 2022, registering a year-on-year growth of around 207%. FADA registered a growth in sales across all vehicle segments, with passenger vehicles registering a growth of 204.3%, while two-wheeler (2W) sales grew by 197.66%. All segments from three-wheelers to tractors and commercial vehicles saw a three-digit growth in sales, although FADA said these numbers were comparable to May 2021 affected by the COVID lockdown.

Vinkesh Gulati, President, FADA said, “The Indian auto industry continued its flat performance for the third consecutive month during May’22. While the year-on-year comparison with May’21 shows an exceptionally healthy growth rate across all categories, it is important to note that both May’21 and May’20 were affected by the nationwide lockdown, thus reducing the spread of COVID-19. reason. So a better comparison would be May’19 which was a normal pre-Covid month.”

The numbers were much lower than pre-Covid May 2019, with overall sales down 9.66%. As compared to sales in 2019, most of the segments witnessed a decline in sales, with only tractors and passenger vehicles being the major gainers. Sales of Passenger Vehicles grew by 11.4% as compared to May 2019, while sales of Tractors grew by 33.09%. There was a decline of 13.91% in the sales of two wheelers.

“Like last month, May’22 as compared to May’19 shows that auto retail is still not on growth trajectory as overall retail sales were down -10%. While PV & Tractors continued their positive performance by registering growth of 11% and 33%, 2W, 3W & CV have so far not shown any signs of healthy run-rate (compared to pre-covid months) as they – have come down to 14%, -19% and 11% respectively,” Gulati said.

Gulati also revealed that FADA expects two-wheeler sales to be positively impacted by the recent reduction in excise duty on fuel, though hike in third party insurance premiums may be a deterrent for some.

Gulati also touched upon the sale of electric two-wheelers in the country. “While the sales of 2W EVs were growing rapidly on a low basis, various incidents of fire across almost all EV brands have created a fear in the mind of the customer. Coupled with the supply chain issues, 2W EV sales have come down drastically since last month,” he said.

FADA also warned that the ongoing Russia-Ukraine conflict, inflation and supply chain issues will have an impact on improving sales. The impact of this will be by delay in delivery due to shortage and increase in wholesale prices which in turn will reduce the disposable income in the hands of the consumers.

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The dealer body also revealed that the state of Andhra Pradesh has now gone ahead to register the new vehicles on the vehicle portal. Now only Telangana, Madhya Pradesh and Lakshadweep are left to migrate to the new portal.

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