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As per the data released by FADA, total vehicle retails for the month of August’21 rise by 14.48% on a YoY basis. When compared to August’19 (a regular pre-covid month), retails are still down by -14.75%. On a YoY basis, all categories were in green with 2W up by 6.66%, 3W up by 79.70%, PV up by 38.71%, Tractor up by 5.50%, and CV up by 97.94%. Both Tractors, as well as PVs, continue to see robust demand as they grow by 35.98% and 31.67% when compared to August’19, a pre-covid month.
Commenting on how August’21 performed, FADA President, Mr. Vinkesh Gulati said, “Auto Dealers are facing the most challenging phase of their business career as Covid-19 after-effect continues to play spoil-sport. While until last year, when demand was a challenge, supply is becoming a bigger problem currently due to shortage of semi-conductors, even though there is high demand for passenger vehicles.
Every dealer by now starts planning for a bigger offtake in anticipation of a bumper festive but due to supply issues, inventory levels are at their lowest levels during this Financial Year.
The 2W market is highly price-sensitive. With multiple price hikes, increased fuel cost coupled with Educational Institutions remaining closed, the impact could be felt on the overall segment. Customers continued to fight financial battle due to Covid related health issues and hence remained away from dealerships resulting in low enquiry and lower sales. This has its impact on the entry-level segment which continues to face the biggest brunt.
CV segment continues to witness some recovery coming back majorly due to the low base of last year. While SCV’s had already shown good recovery due to the intracity goods movement, M&HCVs are picking up pace only in specific geographies where the Government is rolling out infrastructure projects. Acquisition cost post-BS-6 implementation along with financers keeping away from the segment and high fuel cost continues to restrict recovery in CV demand.”
Disclaimer:
1- The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2- Vehicle Retail Data has been collated as on 05.09.21 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,313 out of 1,527 RTOs.
3- CV is subdivided in the following manner
a. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
b. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
c. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
d. Others – Construction Equipment Vehicles and others