FADA releases September’22 Vehicle Retail Data
he Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for September’22.
- On YoY basis, total vehicle retail for the month of September’22 saw a growth of 11%.
- Except tractors which decreased by -1.5%, all the other categories were in green. 2W, 3W, PV and CV were up by 9%, 72%, 10% and 19% respectively.
- When compared with September’19, a pre-covid month, total vehicle retail continued to be lower by -4%. PV segment sustained its healthy run by growing 44%. Similarly, growth in 3W, Tractor and CV also closed in green by increasing 6%, 37% and 17% respectively. It is only the 2W segment which continues to be a drag as the same fell by -14%.
- Rural India in states like HP, HR, UK, UP and JH showed weakness with lower contribution to Auto Retail especially in entry level 2W and PV category.
- While overall retail in PV will be at a decade high during this festive season, it is the 2W category where Auto Industry continues to pin its hope for showing healthy growth.
Hyderabad, October 4, 2022: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for September’22.
Commenting on how September’22 performed, FADA President, Manish Raj Singhania said, “Auto Retail for the month of September’22 saw an overall growth of 11%. September witnessed both, the inauspicious period of Shradh (a.k.a Pitru Paksha) from 10-25th September and festive period which began with Navratri on 26th September. Due to this, the full potential for the month was not realised as it should have been.
When compared with September’19, a pre-covid month, total vehicle retails continue to fall by -4% but narrowed the gap from previous months. PV segment continues to show extremely healthy figures by growing 44%. 3W, Tractor and CV also closed in green with an increase of 6%, 37% and 17% respectively. The 2W segment is yet to show signs of any revival as it remains a drag by falling as much as -14%.
The 2W segment showed a growth of 9% YoY but fell by -14% from Sept’19. Due to increased input costs, 2W companies raised prices by 5 times in past one year. Apart from this, RBIs fight with inflation saw rate hikes which continued to make vehicle loans expensive. While India is showing revival signs, Bharat is yet to perform. 2W especially entry level vehicles are finding extremely less buyers thus dragging the entire segment.
The 3W segment continues to see structural shift from ICE to EV. This is also reflected in extremely healthy growth rate of e-rickshaw’s. Apart from better availability of vehicles with full range products including alternate fuels, customers have started using public transport and rickshaw service thus fuelling demand in this segment.
While the CV segment grew by 19%, it is the HCV segment which showed a healthy growth of 40% YoY. Reasons like better availability of vehicles, festivities, bulk fleet purchase and Government’s continued push for infrastructure development made this segment shine.
The PV segment continued its ‘Bolt’ run by showing a growth of 10% YoY and 44% when compared to Sept’19, a pre-covid month. Better availability due to easing semi-conductor supply, new launches and feature rich products kept customers glued to dealerships for getting their favourite vehicles during the auspicious period. The waiting period continues to range between 3 months to 24 months especially for SUVs and compact SUVs which have become the absolute choice for today’s customers.”