Federation of Automobile Dealers Associations (FADA) has released monthly retail data for November 2021. Last month, India’s total auto sales stood at 18,17,600 units, a marginal 2.7 per cent decline from retail sales of 18,68,068 vehicles a year ago. November 2020. However, as compared to 13,64,526 units sold in October 2021, the industry witnessed a month-on-month (MoM) growth of 37 per cent. At the same time, in November 2021, the passenger vehicle segment witnessed 2,40,234 new registrations, a decline of nearly 20 per cent as compared to sales of 2,98,213 units during the same month in 2020. However, in comparison to sales of 2,28,431 units. October 2021, the segment witnessed a MoM growth of 5 per cent.
Vinkesh Gulati, President, FADA said, “PV is bearing the brunt of the semi-conductor shortage. While new launches are keeping customer interest high, it is only the supply crunch that is not allowing the sales to end. The extended waiting period is now starting to annoy the customers, and this may reduce the interest in buying the vehicle.”
FADA says that despite Diwali and weddings falling in the same month, auto retail remained in the negative zone in November. Unprecedented rains in the southern states added to the problem. Carandbike reached out to the country’s largest carmaker Maruti Suzuki India for comment on the PV retail performance, however, for now, the company’s response is awaited.
Read also: Car sales November 2021: Maruti Suzuki sees 9% drop in sales, but reports highest monthly exports
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In November 2021, total two-wheeler retail sales remained stable at 14,33,855 units as against 14,44,762 units sold in the same month last year. However, as against 9,96,024 vehicles sold in October 2021, the segment witnessed a MoM growth of around 44 per cent. Despite this, FADA maintains that overall sentiment remained low as the wedding season also did not help the revival except in one or two states.
Read also: Two-wheeler sales November 2021: 23 per cent decline in Bajaj’s domestic sales
Commenting on the industry’s performance, Nikunj Sanghi, owner of JS Fourwheel Motors, a dealer partner of Mahindra and Hero MotoCorp, said, “Two wheeler sales were certainly not close to what was expected, and the passenger vehicle (segment) Because of low availability. How the festival season and wedding season would have performed if the supply had been better. Because of the waiting list and because people are not getting their vehicle, it is difficult to say that the passenger vehicle industry How is it if the supply was absolutely normal and there were sufficient numbers available then would have performed.”
Experts believe that the long waiting period due to shortage of semiconductors is affecting the demand for passenger vehicles.
However, Sanghi said he is happy that retail sales were much better than wholesale numbers, and this indicates that inventory has improved, which is always good for the industry. He further added that the inventory correction has been very good especially in the two-wheeler space.
Commenting on the expectation from the market, Sanghi said, “Going forward, I think the situation will remain tense, especially on two-wheelers, as we are not seeing any demand signal… in the passenger vehicle segment as well. , if the semiconductor issue does improve, there will be some reduction in demand.”
The FADA report shows that the growth in sales of three wheelers and commercial vehicles was a ray of hope for dealers, which were otherwise mostly a worrying situation. Three-wheeler sales stood at 40,493 units in November 2021, a whopping 67 per cent growth as compared to 24,269 units sold during the same month in 2020. On the other hand, CV sales last month stood at 57,389 units, up nearly 13 per cent. An increase against 50,644 units sold in November 2020.
Sales of commercial vehicles last month stood at 57,389 units, a growth of nearly 13 per cent as compared to 50,644 units sold in November 2020.
Sridhar V, Partner, Grant Thornton India LLP, sharing his thoughts on the retail performance of November. “The waiting period due to chip shortage and unusually heavy rains in some parts of the country has been a major constraint for sales and registrations in both the 2W and PV segments in November 2021. Large OEMs, especially those of Chip The shortfall has borne the brunt of the shortfall, which is expected to take some more time to settle. Year-end inventory settlement and pending price hikes may trigger a slightly above expected pace in the new year in December 2021.”
On the other hand, auto industry expert Avik Chattopadhyay said, “The percentage of neutral and negative sentiments shared in the FADA report is a matter of grave concern to all – policy makers, automakers and network partners. The last time the automobile market experienced There was an overall positive sentiment in September 2018. Since then, slowing of economic growth, lack of employment opportunities and the covid pandemic have worked together in building the current mood. We will not come out of this anytime soon and the solution lies in the vehicle beyond the control of manufacturers and their network partners.”
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FADA expects that the chip shortage will reduce in the times to come and hence the waiting period of the vehicles will be reduced and help in increasing the sales.
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