The Federation of Automobile Dealers Associations cautioned comparison with the April 2020 and April 2021 period since the Indian vehicle market witnessed a country-wide lockdown during phases 1 and 2 of Covid-19.
View PhotosThe Indian automobile industry is still under the jitters of Covid.
The Federation of Automobile Dealers Associations (FADA) released vehicle retail data for April 2022. Despite a Year-on-Year (YoY) increase of 37 per cent in the total vehicle retails for the month of April 2022, the apex body cautioned comparison with the April 2020 and April 2021 period since the Indian vehicle market witnessed a country-wide lockdown during phases 1 and 2 of Covid-19. Nevertheless, all the sectors observed a green uptick, as overall sales of two-wheeler, three-wheeler, commercial vehicles, passenger vehicles, and the tractor segment increased by 37.99 per cent, 95.91 per cent, 52.18 per cent, 25.47 per cent, and 26.14 per cent, respectively.
On YoY basis, total vehicle retail for the month of April’22 increased by 37%.#ONOA #FADAResearch @vinkeshgulati @manish_raj74 @CSVigneshwar2 @SaiGiridhar_Jpr @saharshd @ashishkale9 @John_K_Paul @kvsprao @nikunjsanghi @ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC
— FADA (@FADA_India) May 5, 2022
Also Read: Passenger Vehicle, Two-Wheeler January 2022 Retail Sales In India Take A Hit: FADA
FADA also warned long waiting period for PVs due to the ongoing Russia – Ukraine war, and China under lockdown, which would further disrupt the supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails. On other hand, the two-wheeler segment witnessed a slight increase in sales when compared to last month but is extremely sensitive to price hikes and continues to remain below pre-covid levels. Apart from rural distress, multiple price hikes coupled with high fuel prices are keeping price-sensitive entry-level two-wheeler customers away.
On a YoY basis, 2-Wheeler up by 38%.#FADARetail #ONOA #FADAResearch@ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC pic.twitter.com/0lOzlLmlQo
— FADA (@FADA_India) May 5, 2022
Vinkesh Gulati, President, FADA said, “The month of April saw similar Auto Retail figures as of March’22. While YoY comparison with April’21 shows all categories in green with a high growth rate, it is important to note that both April’21 and April’20 was affected by nationwide lockdown due to phase 1 and 2 of the Covid wave which witnessed no to negligible business. Hence a better comparison will be with April’19 which was a normal pre-covid month.”
On a YoY basis, 3-Wheeler up by 96%. #FADARetail #ONOA #FADAResearch pic.twitter.com/dTBAkA2Ria
— FADA (@FADA_India) May 5, 2022
Also Read: Passenger Vehicle Retails Sales In India Fall By 11% In December: FADA
The Indian automobile industry is still under the jitters of Covid and hasn’t fully recovered as earlier predicted. When compared with April 2019, total vehicle retails were down by 6.39 per cent, whereas PV and tractors segments were up by 11.91 per cent and 30.55 per cent. However, all the other categories like the two-wheeler, three-wheeler, and CV were down by 10.75 per cent, 13 per cent, and 0.49 per cent respectively.
On a YoY basis, CV up by 52%. #FADARetail #ONOA #FADAResearch@ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC pic.twitter.com/F0K2Fqbbi3
— FADA (@FADA_India) May 5, 2022
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The sluggish growth could further be slowed down due to RBI’s move of increasing the repo rate by 45 bps, which came in unexpectedly earlier this week. FADA believes that this sudden move could put brakes and dampen the overall sentiment of the industry further, as it would curb excess liquidity in the system and make auto loans expensive.
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