Vehicle sales growth: Vehicle sales jumped 8% on strong demand and easing supply issues

Auto registrations – an indicator of retail sales – rose 8% last month amid strong demand and improving supply issues.

No less than 15,21,490 vehicles were sold last month, an increase of 8.3% compared to the 14,04,704 units sold during the same period of the previous financial year, according to data available from the Federation. automobile dealer associations (FADA). Sales, however, were down 7% from August 2019.

Tractor sales fell by nearly a third, off a high base, in the month under review. However, demand has increased in other categories. Sales of passenger vehicles rose 6.5% to 2,74,448 units in August. Retail sales of three-wheelers and utility vehicles increased by 83.14% to 56,313 units and 24.12% to 67,158 units respectively.

Given the market momentum, the industry is expected to record the best car sales ever in a decade in this festive period, said Manish Raj Singhania, the new head of the industry body.

“The PV (passenger vehicle) segment continues to grow as demand for all vehicle sub-categories except entry-level vehicles remained strong,” he said. he declares. “It’s also being facilitated by new feature-rich launches that OEMs (original equipment manufacturers) have been doing for the past few months.”

With the easing of the semiconductor shortage, vehicle availability has improved, but waiting periods persist due to high demand for superior, feature-rich variants. The average passenger vehicle inventory in the canals now sits at 30-35 days.

The federation compiled the figures from vehicle registration data available on the Ministry of Road Transport and Highways’ Vahan dashboard. Although the figures are incomplete as some regional transport offices are still not linked to the Vahan portal, these are considered a good indicator of the trend in the automotive retail market, as manufacturers only disclose their shipments. from factories.

Retail sales of commercial vehicles held steady last month thanks to government spending on infrastructure, new launches by automakers and better conversion of fleet operations. The passenger carrier segment also saw good traction, with educational institutions and offices returning to normal. Three-wheelers continued to see an increase in demand driven by electric rickshaws due to increased passenger movement, matching 2019 sales for the first time, FADA said.

Retail sales in the two-wheeler segment increased by 8.5% to 10,74,266 units. However, with rural markets under stress, volumes remained below pre-Covid levels. “This, coupled with price increases, has made the 2W product out of reach for most entry-level customers,” Singhania said. “With an erratic monsoon, the harvest was poor and a flood-like situation limited customer movement.”

The average inventory of two-wheelers in the English Channel is currently 30-33 days. While September has Onam and Navratri, it also brings the 15-day period of Shraadh, generally considered an inauspicious time for buying vehicles, he said.