Total vehicle sales down 5.27 pc YoY in September '21

Total vehicle sales for the month of September 2021 on a year on year basis fell by 5.27 per cent compared to the same month in 2020, according to data provided by the Federation of Automobile Dealers Association (FADA). While it was 13,68,307 last year, it was 12,96,257 last month.

When compared to a regular pre-covid month like September 2019, overall retail fell by 13.50 per cent.

However, there was also a bit of cheer as on a YoY basis, 3W was up by 51 per cent, passenger vehicles up by 16 per cent and commercial vehicles up by 47 percent. However, 2W and Tractors fell by 12 per cent and 24 per cent respectively.

FADA said that with the first half of FY 21-22 coming to an end, total retails grew by 35 per cent YoY with highest growth seen in CV segment at 127 per cent. When compared to 2019, a pre-covid year, overall retails were down by 29 per cent. Only the tractor segment grown by 19 per cent and all the other categories continue to be in the red.

“The full-blown semiconductor crisis continues further and shows its impact on PVs. Dealers not able to fulfil customer demand due to demand supply mismatch resulting in long waiting period,” FADA said.

“Commercial vehicle segment continues to gain strength as medium CV for the first time rises above pre-pandemic levels of 2019, FADA added.

FADA President Vinkesh Gulati said: “Auto retail in the month of September has taken a pause as overall sales were down by 5 per cent. During the first half of this FY, while the overall retails were up by 35 per cent, the same was down by 29 per cent when compared to 2019, a pre-covid year. On a long term basis, except tractors which grew by 19 per cent and PV which has almost reached pre-covid levels, all the other segments were in the red.

“The 2W category continues to play spoilsport as the 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.

“The 3W 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.

“As we enter the core of this year’s festive season, the full-blown semiconductor crises continue 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 Sept’19," he added.

As far as the near future is concerned, FADA said: “With India entering the 42 days festive period beginning today, the near-term outlook for this year’s festive season will be a mixed bag. While dealers have increased their inventory in 2W category, PV inventory is at the lowest during this FY due to the ongoing semi-conductor crises.

“The chip shortage looks less likely to ease within next two quarters. As a result, PV sales is likely to stagnate going ahead even though OEMs are coming ahead with new launches to keep the customer excited. With skyrocketing fuel prices and a drop in purchasing power, entry level customers in rural India are keeping themselves away from fulfilling their mobility needs.

“India’s vaccination drive has reached a remarkable momentum. This, coupled with a less likelihood of third wave in near future and offices and educational institutions opening up in a phased manner, we anticipate a marginal recovery process to begin in the two-wheeler space. FADA hence requests all two-wheeler OEMs to roll out special promotions schemes so that it can springboard two-wheeler retails for a faster recovery,” it added.

Inventory at the end of September’21

Average inventory for Passenger Vehicles ranges from 15-20 days

Average inventory for Two-wheelers ranges from 30-35 days