Automobile retail gross sales in India rise 8.31% in August: FADA

Retail gross sales of cars in India grew 8.31 per cent in August this yr on the again of enhance in registrations of automobiles throughout all main segments, vehicle sellers’ physique FADA mentioned on Thursday.

As per knowledge launched by the Federation of Automobile Dealers Associations (FADA), complete automobile retail gross sales within the nation stood at 15,21,490 models final month as in comparison with 14,04,704 models in August 2021.

Passenger automobiles (PV) retail gross sales stood at 2,74,448 models as in comparison with 2,57,672 models within the year-ago month, a development of 6.51 per cent.

Two-wheeler (2W) retail gross sales additionally grew by 8.52 per cent at 10,74,266 models in August 2022 as towards 9,89,969 models in the identical month final yr, it added.

FADA mentioned the three-wheeler (3W) section witnessed the best development charge final month posting 83.14 per cent enhance at 56,313 models, up from 30,748 models in the identical month a yr in the past.

Commercial automobiles (CV) additionally witnessed a strong 24.12 per cent development at 67,158 models as towards 54,107 models within the year-ago month.

FADA President Manish Raj Singhania mentioned August retail gross sales weren’t encouraging and never as per expectations of sellers, who anticipated a very good begin to the festive season with Ganesh Chaturthi.

“When compared with August 2019, a pre-COVID month, total vehicle retails fell by 7 per cent. While PV outperformed handsomely by growing 41 per cent, CV also turned positive by growing 6 per cent and thus came out of the COVID blues. All the other segments were in the red with 2W, 3W and tractors falling by 16 per cent, 1 per cent and 7 per cent, respectively,” he added.

Singhania mentioned though the 2W section grew 8.5 per cent final month on a year-on-year foundation, “it continues to face COVID blues due to underperformance of Bharat (rural India) and is still not above 2019 levels”.

“This coupled with price hikes has made the 2W product out of reach for most entry-level customers. With erratic monsoon, the crop realisation has been low and flood-like situation has restricted customer movement,” he mentioned.

On the opposite hand, the PV section continues to be on a robust run as demand for all sub classes of automobiles besides entry-level remained robust.

“This is also aided by new feature-rich launches which OEMs have been doing since the last few months. With semiconductor shortage slowly becoming a passe, vehicle availability has definitely improved but waiting period continues to remain due to high demand in higher feature rich variants,” Singhania mentioned.

Similarly, he mentioned the CV section additionally continues to witness an upswing in financial actions submit monsoon.

The authorities’s infrastructure push, new launches by OEMs and higher conversion in fleet operations has saved the section within the inexperienced, he mentioned, including “the passenger carrier segment is also showing good demand due to increased buying from educational institutions”.

The 3W house has now additionally equalled 2019 gross sales for the primary time. Electrification can also be the best on this class with e-rickshaw main the way in which.

“There is a clear indication that customers are now preferring electric vehicles over internal combustion engine (ICE) vehicles as ICE 3W continues to see double-digit degrowth when compared to pre-COVID levels,” Singhania mentioned.

On the outlook, FADA mentioned , with easing of provide, the PV section will certainly see the very best ever festivities (Navratri and Diwali) within the final one decade.

“Along with this, if vehicle prices continue to remain stable and there are no more health related threats, we may see an uptick in the much awaited 2W space which has not shown the required growth since last festivals.” While Onam and Navratri fall in September, the month additionally has 15-day interval of Shraadh, typically thought-about as an inauspicious interval for getting automobiles, it added.