Car sales could hit a 10-year high this festive season: Fada

Passenger vehicle (PV) sales this festive season could reach their highest level in a decade, the Federation of Automobile Dealers Associations of India (Fada) said, adding that sales of two-wheelers could finally experience an increase this year.

Total domestic sales rose 17.7% from a year earlier in August to 187,000 cars as improved availability of semiconductor chips helped boost production, the data showed. published on Friday by the Society of Indian Automobile Manufacturers (Siam). While sales have increased in all segments compared to last year, shipments of two and three wheelers remain well below the record volumes seen before covid-19.

Domestic wholesale two- and three-wheeler shipments in August were significantly below pre-pandemic peak volumes in 2018, indicating a much slower pace of recovery from PV, where sales are approaching industry highs.

While part of the drop in sales of two- and three-wheelers can be explained by the corresponding increase in electric models of these vehicles, the market for fossil-fuel vehicles remains well below levels reached four years ago. National two-wheeler sales in August were up more than 16% from the same month last year, but still 20% below 2018’s high volume of 1.94 million units.

At the same time, while vehicle production is expected to continue to grow through the festive months through November, retail showroom sales are also catching up. Vehicle registrations rose 8.3% last month on an annual basis, but remained nearly 7.5% below the normal pre-covid August 2019 baseline, the association said. apex dealers.

According to Fada, PV registrations jumped 41% in August compared to the pre-covid benchmark; but two-wheeler registrations fell nearly 16% while three-wheeler registrations fell 0.7%. While dealers have indicated they are not overloaded with inventory in showrooms this time around, a gradual ramp-up of production ahead of the holiday season is the norm and is leading to better availability of stocks. But retail sales in these two segments are significantly lower than wholesale sales.

“Compared to August 2019, a pre-covid month, total vehicle retail sales fell 7%. While PV largely outperformed increasing by 41%, CV also turned positive increasing by 6% and thus came out of the covid blues,” said Manish Raj Singhania, Chairman of Fada.

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