• On YoY basis, total vehicle retail for the month of May’22 increased by 207%. All categories were in green. 2W, 3W, PV, Tractors and CV were up by 198%, 696%, 204%, 216% and 278% respectively.
• Auto Retail has still not recovered from the jitters of Covid. When compared with May’19, total vehicle retail was down by -10%. Except PV and Tractor which continues to show growth of 11% and 33%, all the other categories like 2W, 3W and CV fell by -14%, -19% and -11% respectively.
• Government’s reduction in fuel prices will tame inflation and boost vehicle sales, especially 2W but the increase in 3^rd party insurance premiums will act as a deterrer for the 2W customers to come forward and conclude their purchase decision.
• While the Russia – Ukraine war continues to fuel chip shortage, RBI has warned of more inflation as the increase in wholesale prices will get passed to the consumer thus decreasing his/her disposable income.

6^th June’22, Mumbai (GPN): The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for May’22.

FADA is happy to inform that with its persistent follow up with the Andhra Pradesh Transport Ministry, the state has now migrated vehicle registration to Vahan. While this has happened towards the end of May, full month numbers will only come later. The only states remaining are Telangana, Madhya Pradesh and Lakshadweep. With this Vahan now covers 91.6% RTOs across the country.

May’22 Retails

Commenting on how May’22 performed, FADA President, Mr. Vinkesh Gulati said, “Indian Auto Industry during May’22 continued its flattish run for the 3^rd consecutive month. While YoY comparison with May’21 shows exceptionally healthy growth rate across all categories, it is important to note that both May’21 and May’20 were affected by nation-wide lockdown due to covid thus witnessing. Hence a better comparison will be with May’19 which was a normal pre-covid month.

Similar to last month, May’22 when compared to May’19 reveals that Auto Retail is still not on growth trajectory as overall retails were down by -10%. While PV and Tractors continued its positive run by growing 11% and 33%, 2W, 3W and CV are yet to show any signs of healthy run-rate (compared to pre-covid months) as they de-grew by -14%, -19% and 11% respectively.

The Government made a bold decision to cut excise duty on fuel prices thus reducing inflation and economic distress. While this will have a positive rub-off on sale of vehicles especially 2W, the increase in 3^rd party insurance premium will act as a deterrer for some.

The 2W segment has seen slight improvement in overall sales when compared with April’22. While 2W EV sales were growing rapidly though on low base, various fire incidents across almost all EV brands has created a fear in the mind of the customer. This coupled with supply chain issues, has decreased 2W EV sales drastically from last month. 

The PV segment which has already surpassed May’19 numbers is witnessing huge demand. Dealers are not be able to fulfil the same due to supply side issues. This has not only led to an increase in waiting period (ranging from 3 months to 2 years) but is also keeping the customers frustrated. Healthy booking and single digit cancellation shows that demand may stay put even when normal supply resumes in months to come.

The CV segment especially buses are showing good demand due to re-opening of educational institutions.”

Near Term Outlook

While the Russia – Ukraine war continues to create demand supply mis-match thus delaying the availability of PVs, RBI has warned of more inflation as the increase in wholesale prices will get passed on to the end consumers. This will result in a lower disposable income which will ultimately hamper Auto Sales.

RBI’s observation has come at a time when WPI Index rose by record 15.1% in the wake of high commodity prices and the impact of the breakdown in supply chains due to the War and the strict lockdown by China.

FADA hence continues to remain cautious for any further recovery in Auto Sales in the near term.

Key Findings from our Online Members Survey

• Inventory at the end of May’22
  • Average inventory for Passenger Vehicles ranges from 15 – 20 days
  • Average inventory for Two – Wheelers ranges from 23 – 25 days

• Liquidity
  • Good                   43.7%
  • Neutral               43.7%
  • Bad                      12.6%

• Sentiment
  • Good                 44.2%
  • Neutral               42.2%
  • Bad                      13.6%

Chart showing Vehicle Retail Data

All India Vehicle Retail Data for May’22

CATEGORY	MAY’22	MAY’21	YoY %	MAY’20	% Change w.r.t MAY’20	MAY’19	% Change w.r.t MAY’19
2W	12,22,994	4,10,871	197.66%	1,61,276	658.32%	14,20,563	-13.91%
3W	41,508	5,215	695.93%	1,895	2090.40%	51,446	-19.32%
PV	2,63,152	86,479	204.30%	31,951	723.61%	2,36,215	11.40%
TRAC	52,487	16,623	215.75%	10,193	414.93%	39,438	33.09%
CV	66,632	17,607	278.44%	1,049	6251.95%	75,238	-11.44%
LCV	38,635	9,463	308.27%	694	5467.00%	43,267	-10.71%
MCV	3,941	918	329.30%	2	196950.00%	5,077	-22.38%
HCV	20,945	6,252	235.01%	22	95104.55%	23,931	-12.48%
Others	3,111	974	219.40%	331	839.88%	2,963	4.99%
Total	16,46,773	5,36,795	206.78%	2,06,364	697.99%	18,22,900	-9.66%

Source: FADA Research

May’22 Category-wise market share can be found in Annexure 1

About FADA India

Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~4 million people at dealerships and service centres.

 

FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.

 

Annexure 1

OEM wise Market Share Data for the Month of May’22 with YoY comparison

Two – Wheeler (2W)
Two-Wheeler OEM	MAY’22	Market Share (%), MAY’22	MAY’21	Market Share (%), MAY’21
HERO MOTOCORP LTD	4,59,245	37.55%	1,92,987	46.97%
HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD	2,91,535	23.84%	78,360	19.07%
TVS MOTOR COMPANY LTD	1,69,621	13.87%	57,659	14.03%
BAJAJ AUTO LTD	1,23,083	10.06%	45,557	11.09%
INDIA YAMAHA MOTOR PVT LTD	46,055	3.77%	9,186	2.24%
ROYAL-ENFIELD (UNIT OF EICHER LTD)	45,671	3.73%	14,977	3.65%
SUZUKI MOTORCYCLE INDIA PVT LTD	42,300	3.46%	9,478	2.31%
OKINAWA AUTOTECH PVT LTD	9,303	0.76%	217	0.05%
OLA ELECTRIC TECHNOLOGIES PVT LTD	9,225	0.75%	–	0.00%
AMPERE VEHICLES PRIVATE LIMITED	5,836	0.48%	147	0.04%
PIAGGIO VEHICLES PVT LTD	3,617	0.30%	668	0.16%
CLASSIC LEGENDS PVT LTD	3,548	0.29%	650	0.16%
ATHER ENERGY PVT LTD	3,323	0.27%	160	0.04%
HERO ELECTRIC VEHICLES PVT. LTD	2,850	0.23%	170	0.04%
REVOLT INTELLICORP PVT LTD	1,585	0.13%	42	0.01%
PUR ENERGY PVT LTD	1,466	0.12%	122	0.03%
Others including EV	4,731	0.39%	491	0.12%
Total	12,22,994	100.00%	4,10,871	100.0%

Source: FADA Research