Vehicle retail sales fell by 13 per cent in February: FADA
New Delhi, Mar 9 (KNN) The total vehicle retail sales in the month of February fell by 13.43 percent on-year, according to data released by the industry body Federation of Automobile Dealers Associations of India (FADA).
Passenger vehicles showed double-digit growth at 10.59 percent, YoY. This growth was majorly due to the low base of last year as India had started transitioning from BS-4 to BS-6 emission norms, FADA said in the release.
On a YoY basis, two-wheeler, three-wheeler and commercial vehicle registrations continued their fall by 16.08 per cent, 49.65 per cent and 29.53 percent, respectively.
The data further revealed that the tractors continued their positive momentum by growing 18.89 per cent.
Passenger vehicle waiting period continued to remain as high as 8 months as the scarcity of semiconductors continued to linger around. Dealer inventory for PV and 2W remained in the range of 10-15 and 30-35 days.
''Auto Registrations continued to fall in double digits by -13.43 per cent YoY in the month of February. While Tractors maintained their outperformance compared to the broader market, Passenger Vehicles witnessed double digit growth on low base of last year as India started transitioning from BS-4 to BS-6 emission norms. This coupled with the global semiconductor outrage kept waiting period of PV as high as 8 months. FADA Survey showed that 50 per cent PV Dealers lost 20 per cent + sales due to non-availability of vehicles,'' said said FADA President Vinkesh Gulati.
"2W continued to see sluggish demand as the new wave of Covid in certain states kept customers away. Enquiry levels also narrowed as many educational institutions were still reluctant to open. Fuel prices are at their historic high and have put a dampener in sentiments. This in-turn has pressed the brake on the sale of entry-level price-sensitive category," he added.
Overall CV segment continues to falter as availability of finance, negligible sales of passenger buses due to closure of educational institutes and supply side constraints kept the registrations in deep red, he added.
"LCV’s which saw good pent-up demand during the last few months post unlocking have now started to fall flat. Tippers and HCV’s are in-turn showing initial signs of revival as Government’s infrastructure push has started creating its demand," Gulati said.
The industry has also urged the government to intervene and solve the semiconductor issue which is hampering automobile manufacturing and sales, thus threatening post-pandemic economic recovery.
Further, the fuel consumption which had almost recovered from the lows of the pandemic is once again witnessing headwinds due to historic price hikes. This will have a negative impact on 2W and CV sales, FADA said.