New Delhi: Overall auto retail sales fell 5.27% in September, driven by a double-digit decline in sales of two-wheelers and tractors. The Federation of Automobile Dealers Associations, or FADA, compares the two-wheeler segment with a 11.54% decline and tractor sales by 23.85% in September 2021 over the same period last year.
However, passenger vehicle (PV) sales and commercial vehicle retail sales rose by 16.3% and 46.6%, respectively.
Commenting on the September numbers this year, FATA Chairman Vinkesh Gulati said, “Auto retail sales have been suspended due to a 5% drop in overall sales.” In the long run, all other segments were red except that the tractors had reached 19% and pre-PV cov conditions (almost 2% decrease).
The two-wheeler continued to break down as the entry-level segment has not yet seen healthy growth, according to the Auto Dealers Association.
FADA has asked two-wheeler manufacturers to come up with special plans to revive the entry-level two-wheeler (under 125cc) segment.
It noted that “the performance of the division is now becoming critical” for the overall two-wheeler to return to the rescue lane.
However, the three-wheeler segment, FADA says, is now showing clear signs of a tactical shift from internal combustion engine (ICE) vehicles to electric vehicles because the ratio has reached a 60:40 split.
Near Term Outlook
The FADA says, “The short-term outlook for the festive season this year will be a mixed bag. Despite two-wheeler sellers seeing an increase in inventory, PV inventory is very low this fiscal year due to the current semiconductor crisis.”
It added, “Chip shortages are unlikely to decrease in the next two quarters. As a result, PV sales will go ahead even as OEMs come up with new launches to motivate customers.