Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for October 2021 and 42 days festive period. During the 42-day festive period, total vehicle retails were down by -18% YoY. Except for three-wheelers and commercial vehicles, which were up by 53% and 10%, all the other categories were in red with two-wheelers, passenger vehicles and tractors down by -18%, -26%, and -23% respectively.
This was the worst festive season in a decade for Auto Dealers as semi-conductor shortage in passenger vehicles and low demand for entry-level two-wheeler segment kept the celebrations at bay.
On YoY basis, total vehicle retails for the month of October 2021 decrease by -5.33%. When compared to October’19 (a regular pre-covid month), overall retails continue to fall by -26.64%. On YoY basis, three-wheelers were up by 74% and commercial vehicles were up by 26%. Two-wheeler, passenger vehicles and tractors fell by -6%, -11% and -21%, respectively.
Two-wheeler inventory levels reach 40-45 days period and are a cause of great concern for auto dealers. FADA hence requested two-wheeler OEMs to work towards bringing down the inventory to 21 days. FADA also states that two-wheeler OEMs must come forward with attractive customer schemes for the revival of rural demand as well as entry-level categories.
“We have witnessed the worst festive season in the last decade. Semi-conductor shortage which was already a full-blown crisis showed its true colours when in spite of the above healthy demand, we could not cater to customer’s needs as SUV, Compact-SUV and luxury categories witnessed huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their families’ healthcare needs,” FADA President Vinkesh Gulati said.
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