INSUBCONTINENT EXCLUSIVE:
Automotive (vehicle) retail sales in India saw a 5 per cent dip in December 2022 after a two-month great run, generally due to a 11 percent
decline in two-wheeler sales, reveals data launched by the Federation of Automobile Dealers Associations (FADA)
The downer comes at a time when FADAs wholesale numbers revealed much better figures previously this month.
Besides two-wheelers, FADA
numbers revealed all other classifications remaining in the green in December, with three-wheeler, guest vehicle (PV), tractor, and
industrial lorry during the exact same period publishing development of 42 percent, 8 percent, 5 percent, and 11 percent,
respectively.
Industrial vehicle sales figures out early this month were up 20 per cent, tractor sales 28 percent, PVs 8 per cent, and
two-wheelers marginally up 2 percent, highlighted a report by Axis Securities.
The Indian auto markets domestic PV sales in December 2022
were 276,000 units, 8.3 percent greater than in December 2021, according to business numbers.
Due to increase in inflation, increased
expense of ownership in the rural market yet to pick up totally, and resilient electric vehicle (EV) sales, the internal combustion engine
two-wheeler sector is yet to see green shoots, stated Manish Raj Singhania, president, FADA.
FADA numbers showed that compared to the
pre-Covid month of December 2019, overall retails were down 12 per cent
The two-wheeler sector took down total sales as they fell 21 per cent
All the other categories like three-wheeler, PV, tractor, and business lorry revealed development of 4 per cent, 21 percent, 27 percent and
9 per cent, respectively.
For Calendar 2022 (CY22), while total vehicle retails grew 15 per cent on-year and 17 per cent compared to
Calendar 2020 (CY20), it stopped working to exceed 2019 (CY19) retails - a pre-Covid year - and signed up a fall of 10 per cent.
The PV
category during this duration continued to acquire new ground by clocking 3.43 million retails throughout the complete year
This is by far the highest retails PVs have done to date
The two-wheeler segment stopped working to impress in 2022 as retail sales throughout December 2022 continued to fall after 2 excellent
months.
He added that the approaching Bharat Stage (BS) VI Phase II standards in April and the plan to make 6 airbags necessary are
anticipated to increase the expense of automobiles in the months ahead, putting a dampener on the market.
In India, demand will sustain in
There will not be any effect felt either of the international downturn or of Chinas Covid break out, stated a senior executive of a
commercial vehicle significant.
The three-wheeler sector is on the fix and has actually practically closed the space that had actually
widened after the pandemic breakout
Within the sector, it is the electrical rickshaw sub-segment revealing threefold development, subsequently pressing the EV market share
above the 50 percent mark.
The PV sector has actually continued to reveal amazing consistency in growth during the whole year
While supply concerns have actually lessened, much better product spread and high consumer offers have sustained customer interest
The commercial lorry sector has actually continued to grow throughout the entire CY22 and is now almost on a level with CY19 retails, he
This is because of an uptick in demand for light-commercial vehicles, heavy-commercial cars, buses, and building equipment.
PV, the tractor
section has gone beyond 2020, 2021, and pre-Covid year of 2019
It has likewise signed up fresh lifetime high sales of 794,000 systems.
This was possible due to a consistently excellent monsoon, improved
capital with farmers, much better minimum assistance cost for crops, and the federal governments concentrate on better procurement
The prompt sowing of the rabi crop likewise assisted sustain the momentum
Festival season sales, too, played their part in this momentum, he added.
FADA stated due to inflation pressure and the imminent change in
vehicle standards resulting in rate hikes, it remains careful about the fourth quarter of 2022-23.
The first 15 days of January generally
see low sales before Lohri/Sankranti
Auto original equipment makers (OEMs) have done routine rate hikes in December and revealed the same at the beginning of this year
Once BSVI Phase II standards roll in, there will be more cost walkings across all classifications
To counter this, car OEMs should announce special schemes for retail sales momentum to continue, he added.
