• On YoY basis, total vehicle retails for the month of October’21 decreases by -5.33%. When compared to October’19 (a regular pre-covid month), overall retails continue to fall by -26.64%.
• On YoY basis, 3W was up by 74% and CV was up by 26%. 2W, PV and Tractors fell by -6%, -11% and -21% respectively.
• During the 42 days festive period, total vehicle retails were down by -18% YoY. Except 3W and CV, which were up by 53% and 10%, all the other categories were in red with 2W, PV and Tractors down by -18%, -26%, and -23% respectively.
• This was the worst festive season in a decade for Auto Dealers as semi-conductor shortage in PV and low demand for entry level 2W segment kept the celebrations at bay.
• 2W inventory levels reach 40-45 days period and is a cause of great concern for Auto Dealers. FADA hence requests 2W OEMs to work towards bringing down the inventory to 21 days.
• FADA also requests 2W OEMs to come forward with attractive customer schemes for revival of rural demand as well as entry level category.

18^th November’21, Mumbai (GPN): The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for October’21 and 42 days festive period.

October’21 & Festive Period Retails

Commenting on how October’21 and Festivities performed, FADA President, Mr. Vinkesh Gulati said, “We have witnessed the worst festive season in last decade. Semi-conductor shortage which was already a full blown crises showed its true colours when in spite of an above healthy demand, we could not cater to customer’s need as SUV, Compact-SUV and luxury categories witnessed huge shortage of vehicles. On the other hand, entry level cars saw subdued demand as customers in this category continued to conserve money due to their families healthcare needs. 

The 2W category continues to face the brunt of low sales with entry level category being the biggest spoilsport. The rural distress in retails coupled with frequent price hikes, triple digit fuel prices and customers conserving funds for healthcare emergencies kept the demand low. In fact, walk-in’s and customer inquiries were also ultra-lean during the said period.

In CV, while entry level and SCV’s have already grown post unlocking and due to intra city goods movement, M&HCV is now showing strength due to low base and infrastructure projects coming up in different states. Buses as a category is yet to see any revival in demand. 

With normalcy returning in business, the 3W category has started to witness usual demand. This aided with extreme low base of last year, is also helping 3W post a healthy growth. It is noteworthy to mention that we are witnessing a tactical shift from ICE to EV’s as EV share in 3W has now crossed the 45% mark.” 

Near Term Outlook

Even though the festive period is now over, there is still a huge backlog of order in the PV segment. If PV OEMs are able to realign supply with demand, we can still see a good year end retail. 

FADA requests 2W OEMs to rationalise inventory. It also urges to roll out attractive schemes for customers so that demand especially in the entry level category can be revived.

• Inventory at the end of October’21
  • Average inventory for Passenger Vehicles ranges from 10-15 days
  • Average inventory for Two – Wheelers ranges from 40-45 days
• Liquidity
  • Neutral = 41.7%
  • Good = 37.5%
  • Bad = 20.8%
• Sentiment
  • Neutral = 41.7%
  • Good = 30.4%
  • Bad = 28%

Charts showing Vehicle Retail Data

 

All India Vehicle Retail Data for October’21

CATEGORY	OCT’21	OCT’20	YoY %	OCT’19	% Chg, OCT’19
2W	9,96,024	10,60,337	-6.07%	14,23,668	-30.04%
3W	39,077	22,467	73.93%	63,040	-38.01%
PV	2,28,431	2,57,756	-11.38%	2,74,033	-16.64%
TRAC	44,262	55,874	-20.78%	35,469	24.79%
CV	56,732	44,865	26.45%	63,888	-11.20%
LCV	34,162	32,835	4.04%	40,547	-15.75%
MCV	3,694	2,051	80.11%	3,246	13.80%
HCV	15,874	7,163	121.61%	17,735	-10.49%
Others	3,002	2,816	6.61%	2,360	27.20%
Total	13,64,526	14,41,299	-5.33%	18,60,098	-26.64%

Source: FADA Research

 

 

42 Days Festival Period

CATEGORY	Festival 2021	Festival 2020	Festival 2019	YoY % (2020)	YoY % (2019)
2W	15,79,642	19,38,066	20,35,341	-18.49%	-22.39%
3W	52,802	34,419	86,390	53.41%	-38.88%
CV	77,066	70,361	89,922	9.53%	-14.30%
PV	3,24,542	4,39,564	3,79,988	-26.17%	-14.59%
TRAC	56,841	73,925	49,107	-23.11%	15.75%
Total	20,90,893	25,56,335	26,40,748	-18.21%	-20.82%

Source: FADA Research