On a YoY basis, total vehicle retails for the month of October’21 decreased by -5.33% as per the data released by FADA. When compared to October’19 (a regular pre-covid month), overall retails continue to fall by -26.64%. On a YoY basis, 3W was up by 74% and CV was up by 26%. 2W, PV and Tractors fell by -6%, -11% and -21% respectively.
During the 42 day festive period, total vehicle retails were down by -18% YoY. Except for 3W and CV, which were up by 53% and 10%, all the other categories were in red with 2W, PV, and Tractors down by -18%, -26%, and -23% respectively. This was the worst festive season in a decade for Auto Dealers as semi-conductor shortage in PV and low demand for entry-level 2W segment kept the celebrations at bay.
All India Vehicle Retail Data for October’21
42 Days Festival Period Retails –
Commenting on how October’21 and Festivities performed, FADA President, Mr. Vinkesh Gulati said, “We have witnessed the worst festive season in last decade. Semi-conductor shortage which was already a full-blown crisis showed its true colors when in spite of the above healthy demand, we could not cater to customers’ needs as SUV, Compact-SUV, and luxury categories witnessed a huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their families’ healthcare needs.
The 2W category continues to face the brunt of low sales with the entry-level category being the biggest spoilsport. The rural distress in retails coupled with frequent price hikes, triple-digit fuel prices, and customers conserving funds for healthcare emergencies kept the demand low. In fact, walk-ins and customer inquiries were also ultra-lean during the said period.
In CV, while entry-level and SCV’s have already grown post unlocking and due to intracity goods movement, M&HCV is now showing strength due to low base and infrastructure projects coming up in different states. Buses as a category is yet to see any revival in demand.
With normalcy returning in business, the 3W category has started to witness usual demand. This aided with the extremely low base of last year is also helping 3W post healthy growth. It is noteworthy to mention that we are witnessing a tactical shift from ICE to EV’s as EV share in 3W has now crossed the 45% mark.”