New Delhi [India], December 9 (ANI): The total vehicle retail sales for the month of November 2022 saw a 26 per cent growth on a year-on-year basis, according to the Federation of Automobile Dealers Associations of India (FADA).
According to FADA, two-wheelers (2W), three-wheelers (3W), tractors and commercial vehicles (CV) were up 24 per cent, 80 per cent, 21 per cent, 57 per cent and 33 per cent, respectively.
Compared with November 2019, a pre-Covid month, total vehicle retail closed in marginal positive territory with an increase of 1.5 per cent. Except 2W, which saw a marginal dip of 0.9 per cent, all the other categories were in green with 3W, passenger vehicles (PV), tractors and CV growing by 4 per cent, 5 per cent, 61 per cent and 6 per cent, respectively.
Carrying forward from high festive sales, the Indian wedding season which continues from November 14 to December 14 played its part in increased auto retail, according to FADA.
Healthy auto retail sales are also supported by Reserve Bank of India's 'Consumer Confidence Survey' data which remains to be on recovery path on account of better perceptions on general economic situation, employment and household income. The central bank comes out with a bi-monthly survey -- Consumer Confidence Survey.
RBI's continued rate hike and China Lockdown may play spoilsport in near term, it added.
FADA President Manish Raj Singhania said, "November 2022 has clocked highest retails in the history of Indian automobile industry with March 2020 as an exception when retails were higher due to BSIV to BSVI transition."
Auto Retail in November 2022 saw an overall growth of 26 per cent. The baton was passed by the positive run of festive sales to the Indian wedding season (from November 14 to December 14) where around 32 lakh weddings will be solemnised across the country, according to FADA. All categories were in green with 2W, 3W, PV, tractor and CV growing by 24 per cent, 80 per cent, 21 per cent, 57 per cent and 33 per cent, respectively.
The 2W segment showed a huge growth of 24 per cent year-on-year (YoY) but fell marginally by 0.9 per cent, when compared to November 19, a pre-Covid year. This segment is slowly turning the tides from negative to positive as the same can be witnessed from retail sales due to the ongoing wedding season.
The 3W segment showed a massive growth of 80 per cent YoY and 4 per cent when compared to 2019, a pre-Covid year. The category which was witnessing low demand during Covid has now emerged as the highest-growing category due to positive sentiments and fear of lockdowns out of mind. Also, electrification in the category continues at its highest pace.
The PV segment showed a growth of 21 per cent YoY and 5 per cent when compared to 2019. Better availability of model mixes from past months, new launches and increase in rural demand continues to keep the segment in healthy condition. Compact SUV and SUV category coupled with higher variant models continues to rule to roost.
The CV witnessed a growth of 33 per cent YoY and 6 per cent compared to 2019. With Government's continued focus in the infrastructure space and new mining projects, replacement demand continued to pour in along with healthy inter-state passenger movement enabling bus sales.
The RBI's latest Consumer Confidence Survey data suggested that buoyancy among customers is on a recovery path on account of better perceptions on general economic situation, employment, and household income. This along with the ongoing festive season has continued to help in bringing customers to the showrooms as on date.
For rural India, normally after the harvest starts, farmers get money in hand and this starts the spending cycle. "We expect spending for auto sales to go up once the harvest comes into the market and farmers start getting money in their hands," FADA said.
According to FADA, most of the original equipment manufacturers (OEMs) are announcing price hikes going forward. To counter this and for the lower end of the pyramid, OEMs have started announcing discounts for slow-moving products, lower variants and to clear their year-end stocks. This may help year-end sales to remain healthy. (ANI)