On Thursday August 4, FADA released the data that shows the overall vehicle retail sales was 14,36,927 units in July 2022 as opposed to the 15,59,106 units over the corresponding period last year.
According to the data released, passenger vehicle retail sales saw a decline of 5% at 2,50,972 units in July 2022 as compared to 2,63,238 units in July 2021. Dealers are expecting vehicle sales to pick up in the festive season.
Three-wheelers and Commercial Vehicles (CVs) sales witnessed a growth of 80% and 27% respectively.
Vehicle Retail Sales July 2022
After Russain-Ukraine war, there are increased tensions between China and Taiwan. Owing to the same, the threat of semi-conductor shortage is looming once again. If war hits between China and Taiwan, then Taiwanese chip manufacturers would be rendered ‘non- operable’, according to the local media reports.
FADA President, Vinkesh Gulati said, “CV retail figures continue to witness good demand as the Government’s infrastructure push is helping customers in concluding their purchase. Apart from this, the Bus segment also witnessed the beginning of demand recovery as educational institutions and offices are once again back to normal mode.”
Further, he added, “Auto Retail for the month of July’22 fell by -8%. July is generally considered as a lean month before festival season hits in August.”
PVs and 2Ws’ average inventory ranges from 20-25 days & 20-23 days respectively. In comparison with July’19, total vehicle retails fell by -20%. PV and Tractors continued to outperform and have grown 19% and 7% respectively. 2W, 3W and CVs sales fell by 28%, 15% and 4% each.
Gulati said, “High inflation, erratic monsoon and high cost of ownership continues to keep bottom of the pyramid customers at bay.”
“The 3W space continued to see demand recovery even though full recovery to pre-covid levels is still some time away. Digging deeper, it is clearly evident that e-rickshaws are the biggest mover in the segment. Demand recovery in the 3W passenger category also shows that covid is now behind us as passenger movement has once again started gaining traction,” added Gulati.
FADA states that it collected the July data from 1,334 RTOs out of 1,404 RTOs across the country.