Retail auto sales in November: Retail auto sales in November remain in the negative zone
Total retail vehicle sales in November fell 2.70% year-on-year and compared to November 2019, total retail sales fell nearly 20%. “Unwanted rains in the southern states have spoiled the party again. Unless rural India begins to show signs of strength, retail sales overall will continue to remain weak,” said the chairman of FADA, Vinkesh Gulati.
2-wheelers, in particular, show weak momentum despite the festival season. While at the annual level, 2-wheeler retail sales have remained almost unchanged, compared to November 2019 (before Covid), they have fallen by more than 20%. “Crop losses due to relentless rains and flooding in the southern states, high purchase price as well as fuel costs have driven customers away. In addition, there are no signs of rising levels. of demand, which is of greater concern, â€Gulati added.
The lingering semiconductor crisis has hampered the recovery in auto sales, the data shows. Dealers have been unable to meet demand despite huge bookings, with supply issues resulting in long wait times. 3-wheelers, utility vehicles (CVs) increased by 67% and 13% each year on year while 2-wheelers, passenger vehicles and tractors fell by 1% respectively, 19 % and 9%.
Commercial vehicles continue to see traction in the M & HCV segment. Double digit growth could be seen on a weak basis. “The bus segment is still experiencing a slowdown as educational establishments remain closed. With diesel prices at record highs, the supply of CNG vehicles is unable to meet demand. Limited liquidity and unavailability of funding for customers who have benefited from the moratorium are also acting as a sales barrier, â€said Gulati. It can be noted that compared to the pre-Covid era (November 2019), CV sales are down 21.28%.
At the end of November 2021, average inventory levels for passenger vehicles ranged from 10 to 15 days while average inventory levels for two-wheelers ranged from 30 to 35 days.