The FADA data highlights tough spots with a bleak near-term outlook as well as factors such as rising fuel prices, supply chain issues and rising costs of ownership.
The Federation of Automobile Dealers Associations (FADA) has released registration figures for the month of March in India with numbers suggesting a dire outlook, especially due to the underperforming two-wheeler segment. fruit in this country. Many factors remain a common challenge for the Indian auto industry as a whole with FADA pointing to rising fuel prices, rising cost of ownership, supply chain issues – among others. – are some obstacles.
According to FADA, overall retail sales in March of this year were down 3% when compared to figures from March 2021 and 30% compared to figures from March 2020. On an annualized basis. , while retail sales of tricycles and commercial vehicles increase, the main interest is coming from the two-wheeler, passenger vehicle and tractor segment.
|Category||March 22||March 21||YoY%||March 20th||% Change, March 20|
For passenger vehicles, demand is still strong, but limited supply is a major obstacle. These obstacles are being exacerbated by global factors such as prolonged semiconductor shortages, lockdowns in parts of China due to increasing Covid-19 cases and Russia-conflicts- Ukraine. For two-wheelers, the backbone of the auto industry, the already poor performance is getting worse. FADA President Vinkesh Gulati has called on two-wheeler manufacturers to offer special promotions and offers to create a new contract for the entire segment. He further stressed that the ‘short-term outlook for the Indian auto industry continues to remain a challenge as Russia’s war with Ukraine is ongoing and China’s grip does not suggest a smooth path. shall.’
However, what can lift sales — and morale — is the holiday season, festivals, and the reopening of educational facilities and offices, FADA notes. Even if pent-up demand can pick up well, supply remains under a gray cloud.
Date of first publication: April 5, 2022, 01:06 PM IST