Auto companies’ retail sales fell in January 2022
New Delhi:
According to the data released by Federation of Automobile Dealers Associations (FADA), the retail sales of automobile companies in January 2022 declined by 10.70 percent as compared to the same period last year.
FADA is the apex national body of the automobile retail industry in the country, representing 26,500 dealerships across India.
On a year-on-year (YoY) basis, sales of three-wheelers and commercial vehicles grew by 30 per cent and 20.5 per cent, respectively, while sales of two-wheelers, passenger vehicles and tractors declined by 13 per cent, 10 per cent and 10 per cent, respectively. , Non-availability of passenger vehicles due to shortage of semi-conductors is creating a constant problem.
While commercial vehicles and especially heavy commercial vehicles (HCVs) continue to perform well in the pocket, the performance of two-wheelers remains weak as rural India remains in crisis. Passenger vehicle inventory remains at a historic low of 8-10 days, while the list of two-wheelers has come down from an alarming level to 25-30 days.
FADA said the government’s plan to develop 25,000 km of new highways would further increase India’s infrastructure spending and have a positive impact on the commercial segment.
Commenting on the association’s performance in January 2022, FADA President, Vinkesh Gulati said, “The month of January continues to show weak performance as overall retail declined by 10.7 per cent on a year-on-year basis, while three-wheeler And CVs remain in the green, with an increase of 30 per cent and 20.5 per cent.”
“Two-wheelers, passenger vehicles and tractors closed in the negative with negative growth of 13 per cent, 10 per cent and 10 per cent respectively. Auto retail’s weak performance of 18.4 per cent as compared to January 2020 (pre-Covid month) shows that India is the only two-wheeler in the world.” The world is yet to recover from the effects of the coronavirus pandemic that engulfed the world years ago.”
Despite the demand, the passenger vehicle segment continues to bear the brunt of semi-conductor shortages, resulting in lack of a healthy inventory.
Speaking about the two wheeler category, Mr Gulati said that the price hike coupled with rural distress and the Omicron version of COVID-19 impacted the segment negatively. With the revival in the economy, the commercial vehicle segment continues to grow year-on-year, especially in the heavy commercial vehicle category.
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