The Business Bytes
TBB BUREAU
NEW DELHI, OCT 7, 2021
Lower production due to semiconductor supply shortages and a longer waiting period dented India’s overall vehicle retail sales on a sequential, as well as year-on-year basis, in September 2021.
Data released by the Federation of Automobile Dealers Associations (FADA) showed a fall of 5.27 per cent during the month under review from September 2020.
The vehicle retail sales fell to 12,96,257 units in September 2021 from 13,68,307 units sold during the corresponding month of 2020.
On sequential basis, the FADA had reported an overall vehicle retail sales figure of 13,84,711 units for August 2021.
Similarly, last month’s overall retail sales figure, when compared to September 2019 (pre-pandemic) period, showed a decline of 13.50 per cent.
In September 2019, the overall vehicle retail sales stood at 14,98,585 units.
Segment wise, passenger vehicle (PV) retail sales rose 16.32 per cent during the September 2021 from the level of the corresponding period in the year 2020.
The PV retail sales rose to 233,308 units last month from 200,576 units sold during September 2020.
Commenting on how September ’21 performed, FADA President Vinkesh Gulati said that Auto retail in the month of September has taken a pause as overall sales were down by 5%. During the 1st half of this FY, while the overall retails were up by 35%, the same was down by 29% when compared to 2019, a pre-Covid year. On a long term basis, except tractors which grew by 19% and PV which has almost reached pre-Covid levels, all the other segments were in red.
The 2-wheeler category continues to play spoilsport as entry level segment is yet to witness healthy growth. This segment’s performance is now becoming critical for the overall 2W to come back on the path of recovery as dealer inventory rises to 30-35 days in anticipation of a good festive. Semiconductor shortage has also started impacting the 150+ cc segment, he added.
The 3-Wheeler segment is now showing clear signs of tactical shift from ICE to EVs as the ratio has hit a 60:40 split. With offices and educational institutions slowly opening up, electrification of 3W’s will gather a greater momentum in months to come.
Gulati further said: “As we enter the core of this year’s festive season, the full blown semiconductor crises continues to create hindrance in PV sales as vehicle inventory at dealers end dip to record lows of 15-20 days during the current fiscal. With high demand in this segment, long waiting period continues to frustrate and keep enthusiast buyers in a fix.”
The CV segment is finally showing greater strength as all sub-categories continue to grow YoY. MCV for the first time also grows above pre-Covid month of September ’19, he added.
