FADA Releases June’22 Vehicle Retail Data

• On a YoY basis, total vehicle retail for the month of June’22 increased by 27%. All categories were in the green. 2W, 3W, PV, Tractors and CV were up by 20%, 212%, 40%, 10% and 89% respectively.
• Though few categories are consistently showing recovery, full recovery is yet to be witnessed when compared to pre-covid times.
• When matched with June’19, total vehicle retail was down by -9%. PV and Tractor continued to show growth by rising 27% and 40%. For the first time, CV also increased by 4%. The two categories which continue to underperform were 2W and 3W which de-grew by -16% and -6% respectively
• Overall Q1’22 grew by 64% when compared to Q1’21 which saw intermittent lockdowns, but de-grew by -8% when compared to Q1’19. Only PV and Tractor were in green for the entire quarter.
• Increased wholesale reflects ease in semi-conductor availability thus reducing supply-side constraints going ahead.
• High inflationary pressure becomes a cause of major concern.

NEW DELHI: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for June’22.

June’22 Retails

Commenting on how June’22 performed, FADA President, Mr. Vinkesh Gulati said,

“Auto Retail for the month of June’22 continued to show its positive run when compared YoY with June’21, a month which continued to face the brunt of covid.

When compared to June’19, a pre-covid month, overall sales were down by -9%. Apart from PV and Tractors which were already above the pre-covid level for last few months and grew by 27% and 40%, CV for the first time showed a growth of 4% thus indicating recovery slowly creeping in for this segment. While 3W narrowed its de-growth and was at down by -6%, it’s the 2W segment which still remains the biggest cause of concern and is not picking as per expectation. The same was down by -16%.

Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept 2W sales at low speed. In the 3W category, a major shift has happened in the electric category. Apart from this, permit issues and frequent price increases remained the biggest dampeners.

The PV segment continued to see robust growth. An increase in wholesale clearly shows that semi-conductor availability is now getting easier. The waiting period, especially in compact SUV and SUV segments continued to remain high. New vehicle launches are seeing robust bookings thus reflecting a healthy demand pipeline.

The CV segment showed strength for the first time as it grew by 4% when compared to June’19, a pre-covid month. Bus segment along with LCVs are showing good traction.”

Near Term Outlook

The Russia – Ukraine crisis has increased inflationary pressure the world over. RBI Governor during the recent Monetary Policy meeting has also flagged high inflation as a major cause of concern. In the past few months, prices of almost all essential items have moved northwards, thereby putting pressure on the common man’s household budget and thus reducing his disposable income. Additionally, the high fuel prices have had a spillover effect on transportation and made it expensive. This will have a negative effect on entry-level PV as well as the 2W segment which is generally dominated by first-time buyers.

On the other hand, ease in availability of semi-conductors will see increased supply, especially in the PV segment, and thus reduce the waiting period.

If Rural India stabilizes, Auto retail will enter the festive season on a good note.

Key Findings from our Online Members Survey

• Inventory at the end of June’22
  • Average inventory for Passenger Vehicles ranges from 15 – 20 days
  • Average inventory for Two – Wheelers ranges from 20 – 23 days
• Liquidity
  • Neutral                 41.8%
  • Good                    40.0%
  • Bad                        18.2%
• Sentiment
  • Good                    41.8%
  • Neutral                 41.8%
  • Bad                        16.4%
• Expectation from July
  • Growth                50.3%
  • Flat                         35.2%
  • De-growth          14.5%

Chart showing Vehicle Retail Data

All India Vehicle Retail Data for June’22

All India Vehicle Retail Data for Q1 FY’22

Disclaimer:

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4. However, for June’22 Numbers and Andhra Pradesh Data have been covered.
2. Vehicle Retail Data has been collated as of 03.07.22 in collaboration with the Ministry of Road Transport & Highways, Government of India, and has been gathered from 1,282 out of 1,409 RTOs.
3. CV is subdivided in the following manner
   1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
   1. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
   1. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
   1. Others – Construction Equipment Vehicles and others