Buoyancy continues in Auto sector; sales up by 37% in April on YoY basis: FADA

New Delhi, May 5 (KNN) The auto retail in the first month of the new financial year has increased by 37 per cent with all categories 2W, 3W, CV, PV and Tractors witnessing growth on YoY basis.

The Vehicle Retail Data released by the Federation of Automobile Dealers Associations (FADA) on Thursday said that the auto retail segment has still not recovered from the jitters of Covid.

When compared with April 2019, total vehicle retail was down by -6 per cent except PV and Tractors, which were up by 12 per cent and 30 per cent and all the other categories were down, said the report.

Commenting on monthly 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 high growth rate, it is important to note that both April’21 and April’20 were affected by nation-wide 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.”

He further said that with Russia-Ukraine war continuing and China under lockdown, the global Auto Industry continues to witness supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails.

Expressing concern over RBI’s move of increasing repo rate by 40 bps, FADA said that it has clearly taken everyone off guard and this move will apply brakes and dampen the sentiments further.  (KNN Bureau)