Dealers Anticipate This To Be The Best Festive For PV Segment: FADA
The Federation of Automobile Dealers Associations (FADA) has released Vehicle Retail Data for September’22.
September’22 Retails
Commenting on how September’22 performed, FADA President, Manish Raj Singhania said, “Auto Retail for the month of September’22 saw an overall growth of 11 percent. September witnessed both, the inauspicious period of Shradh (a.k.a Pitru Paksha) from 10-25th September and the festive period which began with Navratri on 26th September. Due to this, the full potential for the month was not realised as it should have been.
When compared with September’19, a pre-covid month, total vehicle retails continue to fall by -4 percent but narrowed the gap from previous months. PV segment continues to show extremely healthy figures by growing 44 percent. 3W, Tractor and CV also closed in green with an increase of 6 percent, 37 percent and 17 percent respectively. The 2W segment is yet to show signs of any revival as it remains a drag by falling as much as -14 percent.
The 2W segment showed a growth of 9 percent YoY but fell by -14 percent from Sept’19. Due to increased input costs, 2W companies raised prices by 5 times in past one year. Apart from this, RBIs fight with inflation saw rate hikes which continued to make vehicle loans expensive. While India is showing revival signs, Bharat is yet to perform. 2W especially entry level vehicles are finding extremely less buyers thus dragging the entire segment.
The 3W segment continues to see structural shift from ICE to EV. This is also reflected in extremely healthy growth rate of e-rickshaw’s. Apart from better availability of vehicles with full range products including alternate fuels, customers have started using public transport and rickshaw service thus fuelling demand in this segment.
While the CV segment grew by 19 percent, it is the HCV segment which showed a healthy growth of 40 percent YoY. Reasons like better availability of vehicles, festivities, bulk fleet purchase and Government’s continued push for infrastructure development made this segment shine.
The PV segment continued its ‘Bolt’ run by showing a growth of 10 percent YoY and 44 percent when compared to Sept’19, a pre-covid month. Better availability due to easing semi-conductor supply, new launches and feature rich products kept customers glued to dealerships for getting their favourite vehicles during the auspicious period. The waiting period continues to range between 3 months to 24 months especially for SUVs and compact SUVs which have become the absolute choice for today’s customers.”
Near Term Outlook
The month of October will see Auto Retail on high grounds with 24 days of festive season out of the total 31 days. Dealers anticipate this to be the best festive in a decade for PV segment as we anticipate even higher sales during the month. While semi-conductor supply continues to ease, FADA requests OEMs to match supply as per the demand so that PV sales can further receive a nitro-boost.
The enquiry level in 2W segment is showing positive movement. If this segment, especially entry level 2W also performs well improving its growth to low double digits, overall Auto Retail will see higher growth compared to last 2 festivals but may still lag pre-covid numbers of October’19.
Overall, FADA continues to remain optimistic for the month of October due to the ongoing festive season.
Key Findings from FADA's Online Members Survey
Inventory at the end of September’22
> Average inventory for Passenger Vehicles ranges from 40-45 days
> Average inventory for Two – Wheelers ranges from 45-50 days
Liquidity
> Good 51.2 percent
> Neutral 36.2 percent
> Bad 12.6 percent
Sentiment
> Good 56.7 percent
> Neutral 34.6 percent
> Bad 08.7 percent
Expectation from October
> Growth 70.1 percent
> Flat 21.3 percent
> De-growth 08.7 percent
All India Vehicle Retail Data for September’22
CATEGORY | SEP'22 | SEP'21 | YoY Pecent | SEP'20 | Percent Change w.r.t SEP'20 | SEP'19 | Percent Change w.r.t SEP'19 |
2W | 10,15,702 | 9,31,654 | 9.02% | 10,56,997 | -3.91% | 11,81,668 | -14.05% |
3W | 63,915 | 37,172 | 71.94% | 24,766 | 158.08% | 60,565 | 5.53% |
E-RICKSHAW(P) | 32,153 | 14,227 | 126.00% | 6,884 | 367.07% | 13,622 | 136.04% |
E-RICKSHAW WITH CART (G) | 1,720 | 1,190 | 44.54% | 630 | 173.02% | 367 | 368.66% |
THREE WHEELER (GOODS) | 6,033 | 6,415 | -5.95% | 5,395 | 11.83% | 7,279 | -17.12% |
THREE WHEELER (PASSENGER) | 23,960 | 15,282 | 56.79% | 11,796 | 103.12% | 39,195 | -38.87% |
THREE WHEELER (PERSONAL) | 49 | 58 | -15.52% | 61 | -19.67% | 102 | -51.96% |
PV | 2,60,556 | 2,37,502 | 9.71% | 2,03,300 | 28.16% | 1,80,347 | 44.47% |
TRAC | 52,595 | 53,392 | -1.49% | 70,140 | -25.01% | 38,374 | 37.06% |
CV | 71,233 | 59,927 | 18.87% | 41,084 | 73.38% | 60,939 | 16.89% |
LCV | 43,076 | 37,536 | 14.76% | 31,246 | 37.86% | 38,377 | 12.24% |
MCV | 4,847 | 4,549 | 6.55% | 2,396 | 102.30% | 4,163 | 16.43% |
HCV | 21,318 | 15,271 | 39.60% | 5,487 | 288.52% | 17,316 | 23.11% |
Others | 1,992 | 2,571 | -22.52% | 1,955 | 1.89% | 1,083 | 83.93% |
Total | 14,64,001 | 13,19,647 | 10.94% | 13,96,287 | 4.85% | 15,21,893 | -3.80% |
Source: FADA Research
