Fall in two-wheeler dispatches lead to dip in overall September auto retail sale

Overall retail sales of the Indian automobile sector witnessed a 5 per cent year-on-year drop last month amid a fall in two-wheeler and tractor dispatches during the period. Total overall retail sales last month stood at 12,96,257 units, a dip of 5.27 per cent from 13,68,307 units sold in September of 2020, as per data from automobile dealers' body Federation of Automobile Dealers Associations (FADA).

While dispatches from two-wheeler and tractor segments declined, other segments such as passenger vehicles, commercial vehicles and three-wheelers saw an increase in retail sales last month, when compared with the same period a year ago.

As per vehicle registration data collected from FADA from 1,357 out of the 1,562 regional transport offices (RTOs), sales of two-wheeler stood at 9,14,621 units last month, down 11.54 per cent from 10,33,895 units in September of 2020. Retail sales of tractors also declined by 23.85 per cent to 52,896 units last month, as compared to 69,462 units in the year-ago period.

Sales of passenger vehicles stood at 2,33,308 units in September, a rise of 16.32 per cent from 2,00,576 units in the same month last year. Commercial vehicle retail sales increased by 46.64 per cent to 58,820 units, as compared to 40,112 units in September of 2020. Sales of three-wheelers increased by 50.9 per cent to 36,612 units last month, as compared to 24,262 units sold in the year-ago period.

The 150 cc motorcycle segment has been impacted due to the global shortage of semiconductors. "The two-wheeler category continues to play spoilsport as the entry level segment is yet to witness healthy growth. This segment's performance is now becoming critical for the overall segment to come back on the path of recovery as dealer inventory has risen to 30-35 days in anticipation of a good festive season," said FADA President Vinkesh Gulati, PTI reported.

(with inputs from PTI)