Passenger automobile retail gross sales drop 10% in January as chip scarcity continues: FADA

Passenger automobile retail gross sales declined 10 per cent year-on-year in January 2022, as the businesses continued to undergo manufacturing loss amid semiconductor scarcity, car sellers’ physique FADA mentioned on Monday.
The passenger automobile (PV) gross sales dropped to 2,58,329 models final month, down 10.12 per cent from 2,87,424 models in January 2021.
“In spite of good demand, passenger vehicles continue to face the brunt of semiconductor shortage, resulting in the absence of a healthy inventory,” FADA President Vinkesh Gulati mentioned in an announcement.
Two-wheeler gross sales final month declined by 13.44 per cent to 10,17,785 models, in comparison with 11,75,832 models in January 2021.

Gulati mentioned that rural misery coupled with value rise and omicron wave led to a drop within the gross sales within the section.
Tractor gross sales stood at 55,421 models final month, down 9.86 per cent from 61,485 models in January 2021.
Commercial automobile gross sales, nevertheless, witnessed a progress of 20.52 per cent final month at 67,763 models, as in opposition to 56,227 models within the year-ago month.
“With the revival in the economy, the commercial vehicle segment continues to show year-on-year growth, especially in the HCV category. With increased infrastructure spending by the central as well as state governments, the overall CV segment remains in momentum,” Gulati famous.
Three-wheeler retail gross sales additionally grew by 29.8 per cent to 40,449 models in January 2022 as in comparison with 31,162 models a 12 months in the past.
The complete gross sales throughout classes final month declined by 10.69 per cent to 14,39,747 models from 16,12,130 models in January 2021.
Gulati famous that with the Omicron wave getting weak, the retail gross sales are going to slowly flip constructive.
“Semiconductor shortage is also showing some signs of easing as many PV OEMs assure of better dispatch. We hence expect vehicle availability to improve going further,” he famous.
Gulati said that with the Union Budget stressing on creating 25,000 kms of latest highways, it’ll additional push infrastructure spending, thus, rising business automobile gross sales.
“Rural India has generally been a key driver for the two-wheeler and entry-level passenger vehicle segment. With the government’s plan for 2.3 lakh crore direct payment as MSP to farmers, it may work as a booster for two-wheelers, tractor and entry-level PV sales,” he added.
The upcoming marriage season may even set off some demand revival for the two-wheeler section, Gulati famous.

“Overall, FADA changes its outlook from ‘negative – neutral’ to ‘neutral’ for the next couple of months,” he said.
Federation of Automobile Dealers Associations (FADA) mentioned it has collected information from 1,386 out of 1,597 RTOs throughout the nation.