Passenger Vehicles Retails Sales Grow Above Pre-Covid Levels In July – FADA

The Federation of Automobile Dealers Associations (FADA)’s Vehicle Retail Data for July’21 reports total vehicle retails for the month of July’21 rise by 34.12% on a Y-o-Y basis. When compared to July’19 (a regular pre-covid month), recovery is visible as the deficit reduces to low double digits of -13.22%. Passenger vehicles following the tractors witnessed high demand in July, with retail numbers finally going above Pre-COVID levels of July 2019, PV segment in July 2021 clocked 24% growth over July 2019, while the tractor segment saw 48% growth.

On a Y-o-Y basis, all categories were in green with 2W up by 28%, 3W up by 83%, PV up by 63%, Tractor up by 7% and CV up by 166%.

Commenting on how July’21 performed, FADA President, Vinkesh Gulati said, “With entire country now open, July continues to see robust recovery in Auto Retails as demand across all categories remain high. The low base effect also continues to play its part. PV’s witnesses high demand specially with buzz around new launches and compact SUV segments. The waiting period due to supply side constraints have been persisting since quite a few months and is now becoming a deep routed issue for OEM’s.

Auto Retails have now started narrowing the deficit when compared to pre-covid months. When compared to July’19, the gap reduces to low double digits of -13%. With Tractor retails already above pre-covid levels during the last month, Passenger Vehicles for the first time have reached the same by growing 24%.”

Commercial vehicles saw a massive jump in retail numbers with 52,130 units being sold in July 21, compared to 19,602 units in the corresponding month last year. Heavy commercial vehicles (HCV) saw the highest growth at 867% with 11,307 units in July 21.

“With all categories in green, CV’s continue to see increase in demand specially in M&HCV segment with the Government rolling out infrastructure projects in many parts of the country.” Gulati added.

The 2Wheeler and 3Wheeler segments were in the green with a 27% hike in retail number in the 2W segment and an 83% hike in the 3W segment on a Y-o-Y basis. Compared to July 2019 a Pre-COVID month, both 2W and 3W segments still need to cover some ground.

“The 2W segment though continues to see positive demand YoY, the rate of recovery remains sluggish as customers at the bottom of the pyramid suffer with poor disposable income and rural markets where covid cases were high during the 2nd wave.” Says Gulati.

In the near term, FADA believes the month of August has begun on a positive note with IMD forecasting a normal monsoon, the rural demand should pick up, having a positive effect on the Tractor segment.

“The global semi-conductor shortage is now becoming a deep routed problem for the PV segment which is now above the pre-pandemic mark. The delta variant of Covid if goes out of proportion can be another deterrent and put brakes on auto retail’s recovery with India entering the festive season months.” FADA said in a statement.

All India Vehicle Retail Data for July’21

Source: FADA Research