Comments
The Russia–Ukraine war continues to create demand-supply mismatch delaying the passenger vehicles (PV) availability , while the Reserve Bank of India (RBI) has warned of more inflation as the increase in wholesale prices would lower disposable income hampering auto sales, the Federation of Automobile Dealers Associations (FADA) said on Monday.
FADA continues to remain cautious for any further recovery in auto sales in the near term, it said.
Meanwhile, the PV segment which surpassed May 2019 numbers is witnessing huge demand and dealers are not able to fulfil orders due to supply side constraints. This has not only led to an increase in waiting period (ranging from three months to two years), but is also keeping the customers frustrated, the industry body said.
Healthy bookings and a single-digit cancellation shows that demand may stay put even when normal supplies resume in months to come, it said while sharing the May retail sales numbers.
Robust demand
The CV segment, especially buses are showing good demand due to re-opening of educational institutions, it said.
In its monthly sales report, FADA said the domestic PV retail sales gone up by 204 per cent year-on-year (YoY) to 2,63,152 units in May compared to 86,479 units in the corresponding month last year.
Similarly, due to a lower base in May 2021 because of Covid-19 second wave, the two-wheeler (2W) sales also reported a growth of 198 per cent YoY to 12,22,994 units last month as against 4,10,871 units in May last year.
“Indian auto industry during May 2022 continued its flattish run for the third consecutive month. While YoY comparison with May 2021 shows exceptionally healthy growth rate across all categories, it is to note that May 2021 was affected by the nation-wide lockdown due to Covid,” Vinkesh Gulati, President, FADA said.
The commercial vehicle (CV) retail sales also grew by 278 per cent YoY to 66,632 units during May as compared with 17,607 units in May last year.
Three-wheeler (3W) sales was up six times more at 41,508 units last month against 5,215 units in the corresponding month last year.
Tractor sales grew by over 200 per cent at 52,487 units in May as compared with 16,623 units in May 2021.
All India Vehicle Retail Data for May’22 (Source: FADA)
Comments
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.