AutoRetailSale New Delhi: In spite of the semiconductor shortages along with high metal prices and container shortages, total vehicle retail for the month of April 2022 increased by 37 percent on a year-on-year (YoY) basis, data released by the Federation of Automobile Dealers Association (FADA) said on Thursday.
Two-wheeler, 3W, CV, PV, and tractors were up by 38%, 96%, 25%, and 26% respectively.
However, the auto retail has still not recovered from the jitters of Covid. When compared with April 2019, total vehicle retail was down by 6%.
Except for PV and Trac, which were up by 12% and 30%, all the other categories like 2W, 3W and CV were down by 11%, 13% and 0.5% respectively.
Commenting on the performance, FADA President Vinkesh Gulati said, “The month of April saw similar Auto Retail figures as 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 were affected by nationwide lockdown due to phases 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.''
April'22 when compared with April 19 reveals that we are still not out of the woods as overall retails were down by -6%, he said.
Apart from PV and Tractors which grew handsomely by 12% and 30%, 2W, 3W and CV are yet to turn green as these categories were down by -11%, -13% and -0.5% respectively, he said.
The 2W segment which has witnessed a slight increase in sales when compared to last month is extremely sensitive to price hikes and continues to remain below pre-covid levels.
It is a clear sign that Bharat has not been keeping up with India. Apart from rural distress, multiple price hikes coupled with high fuel prices are keeping price-sensitive entry-level 2W customers away.
"The CV segment after a long downturn that began post the announcement of axle load norms in 2018 is now witnessing demand recovery as all sub-categories continue to inch north. Government's push for infra spending further aids sales,'' he added.
With the Russia – Ukraine war continuing and China under lockdown, the global Auto Industry continues to witness a supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails.
Customers of the PV segment hence continue to witness long waiting periods.
The association said RBI's move of increasing the repo rate by 40 bps has clearly taken everyone off guard and the move will apply brakes and dampen the sentiments further.
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