The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for December’21. As per FADA, total vehicle retails for the month of December’21 decreased by -16%. When compared to December’19 (a regular pre-covid month), overall retails continue to fall by -6%.
The month of December is usually seen as a high sales month where OEMs continue to offer the best discounts to clear the inventory due to change of year. It was however not the case this time around as retail sales continued to disappoint thus wrapping up an underperforming calendar year.
India once again starts facing the heat of Delta/Omicron wave with many states now starting to put movement restrictions thus which will further impact sales.
All India Vehicle Retail Data for December’21 -
On a YoY basis, 3W and CV were up by 59% and 14%. 2W, PV and Tractors fell by -20%, -11% and -10% respectively.
PV sales continue to face the brunt of semi-conductor shortage with the consistent long waiting period. With semi-conductor shortage continuing to play spoil-sport, PV sales in spite of huge bookings, in December closed in the red. Dealers however saw slight ease in vehicle supply thus giving some hope of improvement.
2W sales show no sign of recovery as customers continue to remain cautious with the rising 3rd wave of Covid and bad rural sentiments. The 2W segment was on a different trajectory when compared to PV. High cost of ownership, bad rural sentiment, work from home, and the latest threat of omicron continued to impact sales.
M&HCV segments continue healthy growth with a low base of last year and bring CV sales at almost pre-covid levels. CV segment continues to rise with M&HCV outshining LCV’s. The government’s push for infrastructure spending especially Road infrastructure, better freight rates, price hike announcement in Jan, and a low base helped the overall segment close in positive double digits.
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 03.01.22 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,379 out of 1,590 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