Passenger vehicle retail sales slump nearly 11% in December, says FADA
Federation of Automobile Dealers Associations (FADA) on Wednesday has said that retail sales of passenger vehicles in December 2021 witnessed a 10.91 per cent drop to 244,639 units, as compared to 274,605 units registered in the same month in 2020. Two-wheeler retail sales too slumped by 19.86 per cent on a YoY basis last month. In December 2021, two-wheeler retail sales were recorded at 11,48,732 units, as compared to 14,33,334 units registered in the same month of 2020.
The data released by FADA shows that passenger vehicle retail sales increased by 11.77 per cent last month, as compared to December 2019, when 218,881 units were recorded. However, two-wheeler retail sales are still in red in comparison to the pre-Covid period numbers. Two-wheeler retail sales in December last year were 9.94 per cent down as compared to 12,75,501 units sold in the same month of 2019.
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Total vehicle retail sales in the country too remained down by 16.05 per cent in December 2021, when 15,58,756 units were sold, as compared to 18,56,869 units recorded in the same month of previous year. In terms of pre-Covid times as well, sales remained 6.30 per cent lower, as 16,63,580 units were sold in December 2019.
Speaking about the retail sales performance of the Indian auto industry, FADA president, Vinkesh Gulati said that the month of December is usually seen as a high sales month where OEMs continue to offer the best discounts to clear their inventory due to changes of the 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," Gulati further added.
FADA says that as the country is again facing another wave of Covid-19 pandemic, it will have a negative effect on auto retail in the near term.