Auto retail sales down 10.7% YoY in January: FADA

Despite good demand, passenger vehicles have faced the brunt of semiconductor shortages which have resulted in a lack of healthy inventory at dealerships, affecting sales.

By HT automatic office
|
Updated:
07 Feb 2022, 13:26

File photo used for representation purposes only

Retail sales of automakers in the country were down 10.70% in January 2022 compared to the previous year period, according to the Federation of Automobile Dealers Associations (FADA), which is the top national body. of the automotive retail industry in the country. , representing 26,500 dealerships.

According to data released by FADA, sales of three-wheelers and commercial vehicles (CVs) increased by 30% and 20.5% respectively, while sales of two-wheelers, passenger vehicles (PV) and tractors fell by 13%. 10% and 10%, respectively.

Factors such as rural distress, rising prices and the Omicron variant of the coronavirus have negatively impacted the two-wheeler segment, FADA Chairman Vinkesh Gulati said, ANI reported.

PV inventory continues to remain at an all-time low of 8-10 days, while two-wheeler inventory has risen from alarming levels at 25-30 days. Despite good demand, PV was weighed down by semiconductor shortages which resulted in a lack of healthy inventory at dealerships, affecting sales.

(Also read | FADA urges government to cut GST on two-wheelers to increase demand)

The FADA report further stated that while CVs and Heavy Duty Vehicles (HCVs) continue to perform well in pockets, two-wheelers have shown poor performance as rural India remains distressed due to the effects of the pandemic. “January continues to show weak performance as overall retail sales on an annual basis fell 10.7%, while three-wheelers and CVs continue to remain in the green with growth of 30% and 20.5%,” Gulati said.

He also noted that with increased infrastructure spending by central and state governments, the overall CV segment remained buoyant. However, 55% of resellers said they lost 10% of their sales due to the Omicron variant, according to internal FADA surveys. Gulati added that the government’s plan to develop 25,000 km of new highways will have a positive effect on the commercial segment.

(with ANI inputs)

Date of first publication: February 07, 2022, 1:25 PM IST

Comments are closed.