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Auto gross sales for festive season this 12 months worst in a decade, says FADA | Autocar India

Written by Rashmi

Printed On Nov 22, 2021 08:00:00 AM

Chip scarcity meant that automakers weren’t capable of capitalise sturdy demand for SUVs. Entry-level automobiles and two-wheelers additional suffered from subdued demand.

Automotive and two-wheeler gross sales typically choose up through the festive season. However that hasn’t been the case this 12 months. As per the information launched by Federation of Vehicle Sellers Associations (FADA) for October 2021, total retail gross sales (from supplier to buyer) stood at 13,64,526 items, together with automobiles and SUVs (passenger autos), two-wheelers, three-wheelers, business autos (CVs) and tractors. This determine is decrease by over 5 % in comparison with final 12 months, and a whopping 26 % down in comparison with the pre-COVID occasions of October 2019.

  • 2021 festive season gross sales down as in comparison with final two years  
  • Regardless of decline, automotive phase faring higher than two-wheelers class
  • Chip scarcity, low demand for entry-level cars performed spoilsport

The same pattern is noticed within the 42-day pageant interval this 12 months (from October 7 to November 17), which noticed whole retail of 20,90,893 items throughout all classes. This quantity is 18 % and 21 % decrease than the identical interval in 2020 and 2019, respectively, which prompted FADA to say, “This was the worst festive season in a decade for auto sellers as semi-conductor scarcity in PV phase and low demand for entry-level two-wheeler phase saved the celebrations at bay.”

Notably, whereas each two-wheeler and passenger car gross sales have declined this 12 months, between the 2, the PV class has managed to fare higher.

October retail information
Class Oct 2021 Oct 2020 Oct 2019 % change (from 2020) % change (from 2019)
2W 9,96,024 10,60,337 14,23,668 -6.07% -30.04%
PV 2,28,431 2,57,756 2,74,033 -11.38% -16.64%
TOTAL (additionally consists of 3W, CV, tractor) 13,64,526 14,41,299 18,60,098 -5.33% -26.64%
42 day festive interval retail information
Class Festive interval 2021 Festive interval 2020 Festive interval 2019 % change (from 2020) % change (from 2019)
2W 15,79,642 19,38,066 20,35,341 -18.49% -22.39%
PV 3,24,542 4,39,564 3,79,988 -26.17% -14.59%
TOTAL (additionally consists of 3W, CV, tractor) 20,90,893 25,56,335 26,40,748 -18.21% -20.82%

Supply: FADA analysis

Why are automotive and two-wheeler gross sales down?

As per FADA president Vinkesh Gulati, “Semi-conductor scarcity, which was already a full blown crises, confirmed its true colors when, regardless of an above wholesome demand, we couldn’t cater to buyer’s want as SUV, compact SUV and luxurious classes witnessed big scarcity of autos. However, entry-level automobiles noticed subdued demand as prospects on this class continued to preserve cash as a consequence of their households’ healthcare wants.”

Commenting on scooter and bike gross sales, he added, “The 2W class continues to face the brunt of low gross sales, with entry-level class being the most important spoilsport. The agricultural misery in retails, coupled with frequent worth hikes, triple digit gas costs and prospects conserving funds for healthcare emergencies, saved the demand low. The truth is, walk-ins and buyer inquiries have been additionally ultra-lean through the stated interval.”

PV phase appears to be like sturdy, however two-wheeler sellers want assist

Not all is doom and gloom, although. Regardless of the festive season drawing to a detailed, FADA stories an enormous backlog of orders within the PV phase. In response to the supplier physique, if carmakers are capable of realign provide with demand, we will nonetheless see a superb year-end retail. The common stock of automobiles with sellers is about 10-15 days’ value of inventory.

Two-wheeler sellers, alternatively, have stock for 40-45 days, on common. As such, FADA requested two-wheeler makers to rationalise stock. “It additionally urges to roll out enticing schemes for purchasers in order that demand, particularly within the entry-level class, may be revived,” it added.

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