Vehicle Retail Sales Fall 5.27% As Two-Wheelers, Tractors Drag: FADA

Auto sellers' physique FADA, stated, two-wheeler phase registered a fall of 11.54%.

New Delhi: Overall automobile retail gross sales declined 5.27% in September on a yearly foundation, dragged by a double-digit droop in gross sales of two-wheelers and tractors. Federation of Automobile Dealers Associations or FADA, stated, two-wheeler phase registered a fall of 11.54% and tractor gross sales dropped by 23.85% in September, 2021, as in opposition to the identical interval final 12 months.

However, passenger automobile (PV) gross sales and business automobile retail enterprise jumped 16.3% and 46.6% respectively.

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Commenting on this 12 months's September numbers, FADA President, Vinkesh Gulati stated, "Auto retail has taken a pause as overall sales were down by 5%." He added that on a long run foundation, besides tractors which grew by 19% and PV which has nearly reached pre-Covid ranges (down practically 2%), all the opposite segments had been in crimson."

The two-wheeler category continued to play spoilsport as entry level segment is yet to witness healthy growth, the auto dealers' body stated.

FADA has requested two wheeler makers to dole out special schemes to aid revival in the entry level two-wheeler (below 125 cc) segment as the segment is under severe pressure.

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It noted that the "phase's efficiency is now changing into vital for the general two-wheeler to return again on the trail of restoration."

Though, the three-wheeler segment, FADA said, is now showing clear signs of tactical shift from internal combustion engine (ICE)-powered vehicles to electric vehicles as the ratio has hit a 60:40 split.

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Near Term Outlook

FADA said, "The close to time period outlook for this 12 months's festive season can be a blended bag. While two-wheeler sellers have seen a rise within the stock, PV stock is on the lowest throughout this fiscal as a result of ongoing semiconductor crises."

It further added, "The chip scarcity seems much less prone to ease inside subsequent two quarters. As a end result, PV gross sales is prone to stagnate going forward although OEMs are coming forward with new launches to maintain the shopper excited. With skyrocketing gasoline costs and a drop in buying energy, entry degree clients in rural India are maintaining themselves away from fulfilling their mobility wants."