Passenger Vehicle, Two-Wheeler January 2022 Retail Sales In India Take A Hit: FADA

In its monthly report, the Federation of Automobile Dealers Associations (FADA) revealed that the passenger vehicle and the two-wheeler segment were the worst hit in the Indian automobile industry, with Year-on-Year (YoY) retail sales dropping to 10.12 per cent and 13.44 per cent respectively, in the month of January 2022, compared to the same period last year. However, the announcement of the Minimum Support Price or MSP policy at the Union Budget 2022, positively affected the three-wheeler and the commercial vehicle segment, recording a 29.80 per cent and 20.52 per cent growth in its YoY retail sales for January 2022. Overall, the Indian automobile industry is still recovering from the pandemic effect, as the total retail sales registered 14,39,747 units in January 2022 compared to 16,12,130 units from January 2021, a decline of 10.69 per cent.

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Vinkesh Gulati, President, FADA said, “The month of January continues to show weak performance as overall retails on a YoY basis, fell by 10.7 per cent. While three-wheeler and CV continue to remain in green with a growth of 30 per cent and 20.5 per cent, two-wheeler, PV and Tractors closed in negative with degrowth of 13 per cent, 10 per cent and 10 per cent respectively. Auto retails weak performance of -18.4 per cent compared to January'20 (a pre-covid month) continues to show that India is yet to recover from the covid effect which gripped the world two years ago.”

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The commercial vehicle segment, especially the Light Commercial Vehicles (LCV) market saw a stark growth of 16.46 per cent registering retail sales of 40,343 units in January 2022, compared to the 34,640 units sold in the same period last year. The Medium Commercial Vehicle or MCV segment saw a growth of 17.11 per cent, recording 4,093 units in the first month of 2022, compared to the 3,495 units from January 2021, while the Heavy Commercial Vehicle (HCV) segment saw a significant rise of 41.12 per cent with 20,279 units sold in January 2022, against 14,370 units in January 2021. FADA hopes the recent announcement regarding the expansion of National Highways by 25,000km would further push infrastructure spending, thus resulting in an increase in CV sales.