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Vehicle registrations fall 5%, two-wheelers remain spoilsport, says FADA

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Retail passenger vehicle sales fell by over 5 percent in September as compared to September 2019 (a regular pre-COVID month). On a year-on-year (YoY) basis, three-wheeler sales were up 51 percent and passenger vehicles (PV) saw a 16 percent hike. Commercial vehicles (CV), on the other, clocked 47 percent higher sales as compared to the previous year.

Vehicle registrations fall 5%, two-wheelers remain spoilsport, says FADA
The total vehicle sales fell by over 5 percent in September as compared to September 2019 (a regular pre-COVID month), while overall retail sales fell by over 13 percent, auto dealers' body FADA said Thursday.
"Auto retail in the month of September has taken a pause as overall sales were down by 5 percent. During the first half of this FY, while the overall retail sales were up by 35 percent, the same was down by 29 percent when compared to 2019, a pre-covid year. On a long term basis, except tractors, which grew by 19 percent and PV which has almost reached pre-covid levels, all the other segments were in red," FADA President, Vinkesh Gulati said in a statement.
September 
On a year-on-year (YoY) basis, three-wheeler sales were up 51 percent and passenger vehicles (PV) saw a 16 percent hike. Commercial vehicles (CV), on the other, clocked 47 percent higher sales as compared to the previous year.
However, two-wheeler and tractor sales went down by 12 percent and 24 percent, respectively.
The two-wheeler segment continued to play spoilsport as the entry-level segment hasn't witnessed healthy growth. Gulati said its performance is becoming critical for the overall two-wheeler segment to recover.
H1 FY22
The total retail sales grew by 35 percent YoY in the first half of FY22, with the highest growth seen in the CV segment, which grew by over 127 percent. The segment gained strength as the medium CV for the first time rose above the pre-pandemic levels.
When compared to 2019, a pre-covid year, retail sales were down by 23 percent.
FADA outlook
Near-term: As India enters into a festive period of 42 days, the near-term outlook will be a mixed bag, Gulati said. Two-wheeler dealers are increasing their inventory, but PV inventory is at the lowest levels in this financial year.
The semiconductor crisis continues to impact PVs, FADA said. Dealers find themselves in a bind as they cannot fulfil the demands of consumers due to a supply-demand mismatch. This has resulted in longer waiting periods, it said.
The three-wheeler segment is moving from internal combustion engines (ICE) to electric vehicles. And FADA believes as offices and educational institutions open up, the three-wheeler segment can see greater momentum.
FADA's suggestions
The auto dealers body, FADA has requested all two-wheeler manufacturers to announce special schemes to revive demand in the entry-level two-wheelers.
All India vehicle retail data for September’21
CategorySEP'21SEP'20YoY %SEP'19% Chg, SEP'19
2W9,14,62110,33,895-11.54%11,64,135-21.43%
3W36,61224,26250.90%58,485-37.40%
PV2,33,3082,00,57616.32%1,78,22830.90%
TRAC52,89669,462-23.85%38,01939.13%
CV58,82040,11246.64%59,718-1.50%
LCV36,47430,22220.69%37,340-2.32%
MCV3,7661,595136.11%3,4559.00%
HCV14,6355,059189.29%16,775-12.76%
Others3,9453,23621.91%2,14883.66%
Total12,96,25713,68,307-5.27%14,98,585-13.50%
Source: FADA Research
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