FADA: Auto Sales Grow 207% In May 2022 Though Still Down From Pre-Covid Times

The Federation of Automobile Dealers Association (FADA) released sales numbers for the industry for May 2022 reporting a near 207% year-on-year growth. FADA recorded a growth in sales across all vehicle segments with passenger vehicles posting a 204.3% growth while sales of two-wheelers (2W) were up by 197.66%. Sales across all segments from three-wheelers to tractors and commercial vehicles saw triple-digit growth though FADA said these numbers were in comparison to covid lockdown-affected May 2021.

FADA President, Mr. Vinkesh Gulati said, “Indian Auto Industry during May'22 continued its flattish run for the 3rd consecutive month. While YoY comparison with May'21 shows exceptionally healthy growth rate across all categories, it is important to note that both May'21 and May'20 were affected by nation-wide lockdown due to covid thus witnessing. Hence a better comparison will be with May'19 which was a normal pre-covid month.”

On a YoY basis, PV up by 204%. #FADARetail #ONOA #FADAResearch@ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC pic.twitter.com/C0BpGetp7S

— FADA (@FADA_India) June 6, 2022

Numbers were a lot more subdued when compared to pre-covid May 2019 with overall sales down 9.66%. Compared to sales in 2019, most of the segments witnessed a drop in sales with only tractors and passenger vehicles being the major gainers. Passenger vehicle sales were up 11.4% in comparison to May 2019 while tractors gained 33.09%. 2-wheeler sales were down 13.91%.

“Similar to last month, May'22 when compared to May'19 reveals that Auto Retail is still not on growth trajectory as overall retails were down by -10%. While PV and Tractors continued its positive run by growing 11% and 33%, 2W, 3W and CV are yet to show any signs of healthy run-rate (compared to pre-covid months) as they de-grew by -14%, -19% and 11% respectively,” Gulati said.

On a YoY basis, 2-Wheeler up by 198%.#FADARetail #ONOA #FADAResearch@ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC pic.twitter.com/D1mIc8Rril

— FADA (@FADA_India) June 6, 2022

Gulati also revealed that FADA expected the recent cut in excise duty on fuels to have a positive effect on two-wheeler sales though the hike in third-party insurance premiums could be a deterrent for some.

Gulati also touched on the sales of electric two-wheelers in the country. “While 2W EV sales were growing rapidly though on low base, various fire incidents across almost all EV brands has created a fear in the mind of the customer. This coupled with supply chain issues, has decreased 2W EV sales drastically from last month,” he said.

May'22 Commercial Vehicle Performance with further Split#FADARetail #ONOA #FADAResearch@ficci_india @FollowCII @siamindia @ACMAIndia @SkillsASDC pic.twitter.com/MhYpVTgklU

— FADA (@FADA_India) June 6, 2022

FADA also warned that the ongoing Russia-Ukraine conflict, inflation and supply chain issues would continue have an impact on sales recovery. The effects would range from delays in deliveries owing to shortages and increasing wholesale prices which would in turn reduce disposable income in the hands of consumers.

The dealer body also revealed that the state of Andhra Pradesh had now moved to registering new vehicles on the Vahan portal. Only Telangana, Madhya Pradesh and Lakshadweep are now left to migrate to the new portal.