Autos

Auto industry in fast lane: June retail sales up 27% as chip crisis eases – Times Now


Auto industry in fast lane June retail sales up 27

Auto industry in fast lane: June retail sales up 27%

Photo : BCCL

The auto industry has posted a strong retail sales performance in June, indicating that automakers are on path to recovery after months of struggle due to semiconductor crisis. On YoY basis, total vehicle retail for the month of June 2022 increased by 27 percent, according to data released by the Federation of Automobile Dealers Associations (FADA).

All categories were in green. 2W, 3W, PV, Tractors and CV were up by 20 percent, 212 percent, 40 percent, 10 percent and 89 percent, respectively, it said.

Though few categories are consistently showing recovery, full recovery is yet to be witnessed when compared to pre-covid times, it added.

When matched with June 2019, total vehicle retail was down by 9 percent. PV and tractor continued to show growth by rising 27 percent and 40 percent. For the first time, CV also increased by 4 percent. The two categories which continue to underperform were 2W and 3W which de-grew by 16 percent and 6 percent, respectively.

Overall Q1 2022 grew by 64 percent when compared to Q1 2021 which saw intermittent lockdowns, but de-grew by 8 percent when compared to Q1 2019. Only PV and Tractor were in green for the entire quarter, it said.

Increased wholesale reflects ease in semi-conductor availability thus reducing supply side constraints going ahead, the association said. “High inflationary pressure becomes a cause of major concern.”

FADA President, Vinkesh Gulati said, “Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept 2W sales at low speed. In the 3W category, a major shift has happened in electric category.”

“Apart from this, permit issues and frequent price increase remained the biggest dampeners. The PV segment continued to see robust growth. An increase in wholesale clearly shows that semiconductor availability is now getting easier. Waiting period, especially in compact SUV and SUV segment continued to remain high. New vehicle launches are seeing robust booking thus reflecting healthy demand pipeline,” he added.



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