On YoY basis, total vehicle retail for the month of September’22 saw a growth of 11%.
Except tractors which decreased by -1.5%, all the other categories were in green. 2W, 3W, PV and CV were up by 9%, 72%, 10% and 19% respectively.
When compared with September’19, a pre-covid month, total vehicle retail continued to be lower by -4%. PV segment sustained its healthy run by growing 44%. Similarly, growth in 3W, Tractor and CV also closed in green by increasing 6%, 37% and 17% respectively. It is only the 2W segment which continues to be a drag as the same fell by -14%.
Rural India in states like HP, HR, UK, UP and JH showed weakness with lower contribution to Auto Retail especially in entry level 2W and PV category.
While overall retail in PV will be at a decade high during this festive season, it is the 2W category where Auto Industry continues to pin its hope for showing healthy growth.
4th October’22,Hyderabad: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for September’22.
September’22 Retails
Commenting on how September’22 performed, FADA President, Mr. Manish Raj Singhania said, “Auto Retail for the month of September’22 saw an overall growth of 11%. September witnessed both, the inauspicious period of Shradh (a.k.a Pitru Paksha) from 10-25th September and festive period which began with Navratri on 26th September. Due to this, the full potential for the month was not realised as it should have been.
When compared with September’19, a pre-covid month, total vehicle retails continue to fall by -4% but narrowed the gap from previous months. PV segment continues to show extremely healthy figures by growing 44%. 3W, Tractor and CV also closed in green with an increase of 6%, 37% and 17% respectively. The 2W segment is yet to show signs of any revival as it remains a drag by falling as much as -14%.
The 2W segment showed a growth of 9% YoY but fell by -14% from Sept’19. Due to increased input costs, 2W companies raised prices by 5 times in past one year. Apart from this, RBIs fight with inflation saw rate hikes which continued to make vehicle loans expensive. While India is showing revival signs, Bharat is yet to perform. 2W especially entry level vehicles are finding extremely less buyers thus dragging the entire segment.
The 3W segment continues to see structural shift from ICE to EV. This is also reflected in extremely healthy growth rate of e-rickshaw’s. Apart from better availability of vehicles with full range products including alternate fuels, customers have started using public transport and rickshaw service thus fuelling demand in this segment.
While the CV segment grew by 19%, it is the HCV segment which showed a healthy growth of 40% YoY. Reasons like better availability of vehicles, festivities, bulk fleet purchase and Government’s continued push for infrastructure development made this segment shine.
The PV segment continued its ‘Bolt’ run by showing a growth of 10% YoY and 44% when compared to Sept’19, a pre-covid month. Better availability due to easing semi-conductor supply, new launches and feature rich products kept customers glued to dealerships for getting their favourite vehicles during the auspicious period. The waiting period continues to range between 3 months to 24 months especially for SUVs and compact SUVs which have become the absolute choice for today’s customers.”
Near Term Outlook
The month of October will see Auto Retail on high grounds with 24 days of festive season out of the total 31 days. Dealers anticipate this to be the best festive in a decade for PV segment as we anticipate even higher sales during the month. While semi-conductor supply continues to ease, FADA requests OEMs to match supply as per the demand so that PV sales can further receive a nitro-boost.
The enquiry level in 2W segment is showing positive movement. If this segment, especially entry level 2W also performs well improving its growth to low double digits, overall Auto Retail will see higher growth compared to last 2 festivals but may still lag pre-covid numbers of October’19.
Overall, FADA continues to remain optimistic for the month of October due to the ongoing festive season.
Key Findings from our Online Members Survey
Inventory at the end of September’22
Average inventory for Passenger Vehicles ranges from 40-45 days
Average inventory for Two – Wheelers ranges from 45-50 days
Liquidity
Good 51.2%
Neutral 36.2%
Bad 12.6%
Sentiment
Good 56.7%
Neutral 34.6%
Bad 08.7%
Expectation from October
Growth 70.1%
Flat 21.3%
De-growth 08.7%
Chart showing Vehicle Retail Data
All India Vehicle Retail Data for September’22
CATEGORY
SEP’22
SEP’21
YoY %
SEP’20
% Change w.r.t SEP’20
SEP’19
% Change w.r.t SEP’19
2W
10,15,702
9,31,654
9.02%
10,56,997
-3.91%
11,81,668
-14.05%
3W
63,915
37,172
71.94%
24,766
158.08%
60,565
5.53%
E-RICKSHAW(P)
32,153
14,227
126.00%
6,884
367.07%
13,622
136.04%
E-RICKSHAW WITH CART (G)
1,720
1,190
44.54%
630
173.02%
367
368.66%
THREE WHEELER (GOODS)
6,033
6,415
-5.95%
5,395
11.83%
7,279
-17.12%
THREE WHEELER (PASSENGER)
23,960
15,282
56.79%
11,796
103.12%
39,195
-38.87%
THREE WHEELER (PERSONAL)
49
58
-15.52%
61
-19.67%
102
-51.96%
PV
2,60,556
2,37,502
9.71%
2,03,300
28.16%
1,80,347
44.47%
TRAC
52,595
53,392
-1.49%
70,140
-25.01%
38,374
37.06%
CV
71,233
59,927
18.87%
41,084
73.38%
60,939
16.89%
LCV
43,076
37,536
14.76%
31,246
37.86%
38,377
12.24%
MCV
4,847
4,549
6.55%
2,396
102.30%
4,163
16.43%
HCV
21,318
15,271
39.60%
5,487
288.52%
17,316
23.11%
Others
1,992
2,571
-22.52%
1,955
1.89%
1,083
83.93%
Total
14,64,001
13,19,647
10.94%
13,96,287
4.85%
15,21,893
-3.80%
Source: FADA Research