• On YoY basis, total vehicle retail for the month of June’22 increased by 27%. All categories were in green. 2W, 3W, PV, Tractors and CV were up by 20%, 212%, 40%, 10% and 89% respectively.
• Though few categories are consistently showing recovery, full recovery is yet to be witnessed when compared to pre-covid times.
• When matched with June’19, total vehicle retail was down by -9%. PV and Tractor continued to show growth by rising 27% and 40%. For the first time, CV also increased by 4%. The two categories which continue to underperform were 2W and 3W which de-grew by -16% and -6% respectively.
• Overall Q1’22 grew by 64% when compared to Q1’21 which saw intermittent lockdowns, but de-grew by -8% when compared to Q1’19. Only PV and Tractor were in green for the entire quarter.
• Increased wholesale reflects ease in semi-conductor availability thus reducing supply side constraints going ahead.
• High inflationary pressure becomes a cause of major concern.

MUMBAI, 5^th JULY’22 (GPN): The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for June’22.

June’22 Retails

Commenting on how June’22 performed, FADA President, Mr. Vinkesh Gulati said, “Auto Retail for the month of June’22 continued to show its positive run when compared YoY with June’21, a month which continued to face the brunt of covid.

 

When compared to June’19, a pre-covid month, overall sales were down by -9%. Apart from PV and Tractors which were already above pre-covid level for last few months and grew by 27% and 40%, CV for the first time showed a growth of 4% thus indicating recovery slowly creeping in for this segment. While 3W narrowed its de-growth and was at down by -6%, it’s the 2W segment which still remains the biggest cause of concern and is not picking as per expectation. The same was down by -16%.

 

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 semi-conductor 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.

 

The CV segment showed strength for the first time as it grew by 4% when compared to June’19, a pre-covid month. Bus segment along with LCVs are showing good traction.”

 

Near Term Outlook

The Russia – Ukraine crises has increased inflationary pressure world over. RBI Governor during the recent Monetary Policy meeting has also flagged high inflation as a major cause of concern. In the past few months, prices of almost all essential items have moved northwards, thereby putting pressure on the common man’s household budget and thus reducing his disposable income. Additionally, the high fuel prices have had a spill over effect on transportation and made it expensive. This will have a negative effect on entry level PV as well as 2W segment which are generally dominated by first time buyers.

 

On the other hand, ease in availability of semi-conductors will see increased supply especially in PV segment and thus reduce waiting period.

 

If Rural India stabilises, Auto retail will enter festive season on a good note.

 

Key Findings from our Online Members Survey

• Inventory at the end of June’22
  • Average inventory for Passenger Vehicles ranges from 15 – 20 days
  • Average inventory for Two – Wheelers ranges from 20 – 23 days
• Liquidity
  • Neutral               41.8%
  • Good                 40.0%
  • Bad                      18.2%
• Sentiment
  • Good                 41.8%
  • Neutral               41.8%
  • Bad                      16.4%
• Expectation from July
  • Growth               50.3%
  • Flat                      35.2%
  • De-growth         14.5%

Chart showing Vehicle Retail Data

All India Vehicle Retail Data for June’22

CATEGORY	JUNE’22	JUNE’21	YoY %	JUNE’20	% Change w.r.t JUNE’20	JUNE’19	% Change w.r.t JUNE’19
2W	11,19,096	9,30,825	20.23%	7,95,834	40.62%	13,38,154	-16.37%
3W	46,040	14,735	212.45%	12,079	281.16%	48,830	-5.71%
PV	2,60,683	1,85,998	40.15%	1,28,374	103.07%	2,05,250	27.01%
TRAC	57,340	52,289	9.66%	45,763	25.30%	40,954	40.01%
CV	67,696	35,810	89.04%	10,628	536.96%	65,136	3.93%
LCV	40,349	21,729	85.69%	8,434	378.41%	38,917	3.68%
MCV	4,709	2,100	124.24%	79	5860.76%	4,749	-0.84%
HCV	19,380	9,591	102.06%	347	5485.01%	18,928	2.39%
Others	3,258	2,390	36.32%	1,768	84.28%	2,542	28.17%
Total	15,50,855	12,19,657	27.16%	9,92,678	56.23%	16,98,324	-8.68%

Source: FADA Research

All India Vehicle Retail Data for Q1 FY’22

CATEGORY	Q1 FY’22	Q1 FY’21	Q1 FY’20	Q1 FY’19	YoY % (2021)	YoY % (2020)	YoY % (2019)
2W	35,38,718	22,07,324	12,75,708	40,97,089	60.32%	177.39%	-13.63%
3W	1,29,944	41,590	24,543	1,49,013	212.44%	429.45%	-12.80%
PV	7,93,238	4,83,163	1,82,407	6,77,702	64.18%	334.87%	17.05%
TRAC	1,58,169	1,07,231	61,668	1,17,410	47.50%	156.48%	34.72%
CV	2,12,886	1,04,929	31,950	2,19,189	102.89%	566.31%	-2.88%
LCV	1,23,004	59,763	21,986	1,34,108	105.82%	459.46%	-8.28%
MCV	13,402	6,570	1,710	13,086	103.99%	683.56%	2.42%
HCV	66,836	31,918	5,385	57,478	109.40%	1141.12%	16.28%
Others	9,643	6,678	2,868	14,518	44.41%	236.23%	-33.58%
Total	48,32,955	29,44,237	15,76,276	52,60,403	64.15%	206.61%	-8.13%

Source: FADA Research

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.