Auto retail sales remain slow in November: FADA
In the two-wheeler segment, overall buying sentiment remained weak, according to FADA. Last month, total registrations stood at 18,17,600 units, down 2.7% from 18,68,068 units in November 2020.
Auto retail sales in the country fell around 3% in November as chip shortages and heavy rains in southern India impacted sales in various segments, including vehicles. tourism and two-wheelers, said Wednesday the FADA, the body of car dealers.
Last month, total registrations stood at 18,17,600 units, down 2.7% from 18,68,068 units in November 2020.
Passenger vehicle sales last month were 2,40,234 units, down 19.44% from 2,98,213 units in the same period last year. Similarly, two-wheeler sales last month fell to 14,33,855 units from 14,44,762 units a year ago.
Tractor sales fell to 45,629 units last month from 50,180 units in November 2020.
Registrations of commercial vehicles and three-wheelers, however, rose last month compared to the same period a year earlier.
“Auto retail for the month of November remained in the negative zone despite Diwali as well as the wedding season in the same month. Unwanted rains in the southern states further spoiled the party. Unless rural India is only beginning to show signs of strength, overall retail sales remain weak,” FADA Chairman Vinkesh Gulati said in a statement.
The passenger vehicle segment continues to face the brunt of semiconductor shortages, he added.
“While new launches keep customer interest high, only the lack of supply does not allow sales to close. The long waiting period is now starting to make customers nervous, which can lead to a loss of interest in buying vehicles,” Gulati said.
In the two-wheeler segment, overall buying sentiment remained weak as the wedding season also did not contribute to the revival, except in one or two states, he said.
“Other than that, crop loss due to relentless rains and flooding in southern states, high acquisition price as well as fuel costs have kept customers away. increase in demand levels, which is a greater cause for concern,” Gulati noted.
On the short-term outlook, FADA noted that the emergence of the Omicron variant has once again gripped the entire nation in fear, which further impacts the overall demand for vehicles.
“FADA hopes that the shortage of chips will ease in the coming times and therefore reduce the waiting period of vehicles and help increase sales. On the two-wheeler front, we once again ask all OEMs to announce attractive programs, which can work as a stimulus for sales growth,” he said.
Overall, the industry body remains extremely cautious and hopes that India will not see a third wave with the new COVID variant, he added.
“We also urge the central government as well as all state governments to aggressively drive vaccination coverage so that India is not caught off guard and the recovery to pre-COVID levels is not derailed,” the statement said. FADA.
Date of first publication: 08 Dec. 2021, 8:05 PM IST