India’s vehicle retail sales decline

Lack of supply due to semiconductor shortages as well as incessant rains dipped India’s November overall vehicle retail sales on a year-on-year basis…reports Asian Lite News

The data released by the Federation of Automobile Dealers Associations (FADA) showed a fall of 2.7 per cent during the month under review from November 2020.

The retail sales fell to 18,17,600 units last month from 18,68,068 units sold during the corresponding month of 2020. However, on a sequential basis, the overall vehicle retail sales for last month were higher than 13,64,526 units sold in October 2021.

Also, last month’s overall retail sales figure, when compared to the November 2019 (pre-pandemic) period, showed a decline of 19.78 per cent.

In November 2019, the overall vehicle retail sales stood at 22,65,740 units.

On a YoY basis, passenger vehicle (PV) retail sales fell 19.44 per cent during the month under review from the level of November 2020. The PV retail sales declined to 2,40,234 units last month from 2,98,213 units sold during during the corresponding month of last year.

Similarly, two-wheeler registration declined by 0.75 per cent to 14,33,855 units.

Tractor retail sales fell by 9.07 per cent to 45,629 units.

However, the commercial vehicle (CV) retail sales rose by 13.32 per cent to 57,389 units last month from 50,644 units sold during the corresponding month of last year.

“Auto retail for the month of November continued to remain in the negative zone despite Diwali as well as marriage season in the same month. The unwanted rains in southern states further spoiled the party,” FADA President Vinkesh Gulati said.

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“Unless rural India starts showing signs of strength, overall retails will continue to remain weak.”

According to Gulati, while the 2W segment saw almost at par sales compared to last year, overall sentiment remained low as marriage season also didn’t help in revival except in one or two states. “Apart from this, crop loss due to incessant rains and flood in southern states, high acquisition price as well as fuel costs kept the customers away. Further, there are no signs of increase in inquiry levels which is a bigger cause of concern.”