The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for July’21.
Commenting on how July’21 performed, FADA President, Mr. 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.
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.
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.
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.
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%.“
Near Term Outlook
The month of August begins on a positive note as demand and enquiry levels continue to improve across all categories. With IMD forecasting a normal monsoon during August- September period, sowing operations will pick up gradually. This will have a rub off effect on rural sales especially in Tractor segment.
On the other hand, the global semi-conductor shortage is now becoming a deep routed problem for the PV segment which is now above the pre-pandemic mark. FADA has been raising red-flag since quite some time on demand-supply mis-match.
In an internal survey conducted by FADA, 60% Dealers of PV segment said that they have at least 2 months waiting period for select variants. 35% Dealers also said that the waiting period is more than 4 months among select variants.
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.
Inventory at the end of July’21
Average inventory for Passenger Vehicles ranges from 30-35 days
Average inventory for Two – Wheelers ranges from 20-25 days