The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for December’21.
Commenting on how December’21 performed, FADA President, Mr. Vinkesh Gulati said, “The month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of year. It was however not the case this time around as retail sales continued to disappoint thus wrapping up an underperforming calendar year.
With semi-conductor shortage continuing to play spoil-sport, PV sales in spite of huge bookings, in December closed in red. Dealers however saw slight ease in vehicle supply thus giving some hope of improvement.
The 2W segment however was on a different trajectory when compared to PV. High cost of ownership, bad rural sentiment, work from home and the latest threat of omicron continued to impact sales.
CV segment continues to rise with M&HCV outshining LCV’s. The government’s push for infrastructure spending especially Road infrastructure, better freight rates, price hike announcement in Jan and a low base helped the overall segment close in positive double digits.“
Near Term Outlook
As mentioned in our last Press Release, India is once again under the grip of Covid with Delta/Omicron affecting people at an ultra-fast pace. This has also ignited the 3rd wave.
Various state governments have once again announced covid restrictions. Work and education from home have resumed and will have a negative effect for auto retail. With the fear of health care expenses rising again, the customers are shying away from closing their purchase decisions.
With IIT Kanpur predicting the peak of omicron sometimes in 1st week of February, FADA hence remains extremely cautious over the next 2-3 months.
Key Findings from our Online Members Survey
Inventory at the end of December’21
Average inventory for Passenger Vehicles ranges from 8 – 10 days
Average inventory for Two – Wheelers ranges from 30 – 32 days