Retail gross sales of passenger autos grew final month however the gross sales of two-wheeler and business autos remained low in comparison with the pre-Covid month of May 2019, in keeping with car sellers’ physique FADA.
On Monday, FADA stated that general auto retails stood at 16,46,773 models in May, down from 18,22,900 models in May 2019.
“May 2022 retails when compared to May 2019 reveal that sales are still not on a growth trajectory as overall retails were down by 10 per cent. While PV and tractors continued its positive run… two-wheeler, three-wheeler and CV sales are yet to show any signs of healthy run-rate,” Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati stated in a press release.
While a Year-on-Year (Y-o-Y) comparability with May 2021 exhibits an exceptionally wholesome progress fee throughout all classes, it is very important word that each May 2021 and May 2020 have been affected by nationwide lockdown because of the Covid pandemic, he said.
According to him, a greater comparability might be with May 2019 which was a standard pre-Covid month.
Last month, the Passenger Vehicle (PV) retail gross sales stood at 2,63,152 models. This was 11 per cent increased in comparison with 2,36,215 models offered in May 2019.
The retails in Covid-hit May 2021 and May 2020 stood at 86,479 models and 31,951 models, respectively.
“The PV segment which has already surpassed May 2019 numbers is witnessing huge demand. Dealers are not able to fulfil the same due to supply-side issues,” he stated, including that this has led to a rise in ready interval starting from three months to 2 years.
“Healthy booking and single-digit cancellation show that demand may stay put even when normal supply resumes in months to come,” Gulati famous.
Last month, two-wheeler gross sales stood at 12,22,994 models. It was at 4,10,871 models in May final 12 months.
In May 2019, the two-wheeler retails stood at 14,20,563 models.
“The two-wheeler segment has seen a slight improvement in overall sales when compared with April this year,” Gulati stated.
While the electrical two-wheeler gross sales have been rising quickly, the hearth incidents throughout nearly all manufacturers have created a worry within the thoughts of the shopper, he said.
“This coupled with supply chain issues has decreased two-wheeler EV sales drastically from last month,” Gulati stated.
The business car gross sales stood at 66,632 models final month, up from 17,607 models in May final 12 months. It, nevertheless, remained low as in comparison with 75,238 models in May 2019.
Similarly, three-wheeler gross sales remained muted final month at 41,508 in contrast with 51,446 models in May 2019. In May final 12 months, the retail gross sales stood at 5,215 models.
However, tractor gross sales have been up final month at 52,487 models from 39,438 models in May 2019.
On the gross sales outlook, Gulati stated whereas the Russia–Ukraine struggle continues to create a demand-supply mismatch thus delaying the provision of PVs, RBI has warned of extra inflation as the rise in wholesale costs will get handed on to the tip customers. “This will result in a lower disposable income which will ultimately hamper auto sales.”
Hence, FADA continues to stay cautious about any additional restoration in auto gross sales within the close to time period, he famous.