Automobile Sales Sets New Records in May 2022

Automobile Sales Sets New Records in May 2022

Retail sales of vehicles grew by 11.40% when we compare it to May 2019. Moreover, registrations of two-wheelers, three-wheelers, and commercial vehicles decreased by -13.91%, -19.32%, and -11.44%, respectively, as compared to May 2019.

The Indian automotive industry managed to recover in May 2022 and has registered healthy growth in vehicle sales when compared with last year’s data. Domestic manufacturers like Tata Motors, Maruti Suzuki, and Kia, Mahindra, among others, were in the green last month.

The retail Automobile sales increased at least thrice yearly last month, in line with wholesale dispatches, although on a low base as the workforce, carmakers, and the supply chain stood disrupted in May 2021 because of the outbreak of the pandemic’s second wave. The main reasons behind the low sales were the common buying sentiments among consumers and production disruptions.

Moreover, when the economy seems to be recovering, and with the production seemingly back on track, numerous carmakers are reporting month-on-month and year-on-year sales growth.

According to the available data from retailers boy, the Federation of Automobile Dealers Association (FADA), 1,646,773 vehicles were retailed last month, compared to 536,795 units last year May sales, however, were lower by around 10% when compared with the pre-covid period of 2019 May.

Automakers in India should report wholesale dispatches from factories, not retail sales to customers. Hence the registration numbers are used as a retail sales proxy.

Registration numbers across categories were higher than in May 2020 and May 2021, when the sales were low because of the pandemic, said FADA president VINKESH GULATI.

“Indian auto industry during May 2022 continued its flattish run for the third month”, stated VINKESH GULATI. “The year-on-year comparison with May 2021 and May 2022 was affected by the nationwide lockdown due to the covid pandemic. Hence a better comparison will be with May 2019, which was a normal month”.

VINKESH GULATI said that the government’s move to reduce the excise duty on the fuel would help tame inflammation and boost the s, especially those of two-wheelers. But the increase in the third-party insurance premiums is likely to act as a limitation for three-wheeler or two-wheeler buyers in coming forward and concluding their purchase decision.

VINKESH GULATI said that the two-wheeler segment had seen a slight improvement in the overall sales compared with April 2022. “While the two-wheeler EV sales were growing rapidly though on the low base, various fire incidents across all EV brands have created a fear in the mind of the customer. This, coupled with the supply chain issues, has decreased two-wheeler EV sales drastically from the previous month.”

The FADA put together the data from the Vahan platform of the Ministry of Road Transport and Highways. Vahan captures data from 1,481 out of 1,616 Regional Transport Offices (RTOs) in the country.

With Andhra Pradesh Transport Ministry migrating to the Vahan platform, the data now reflects registrations from 91.6% RTOs in India, FADA stated.

VINKESH GULATI said, Even as the demand remained strong in the passenger vehicle segment, the global auto industry continues to witness supply disruptions, especially of the semiconductors, amid the Russia-Ukraine conflicts and covid- induced lockdowns in China.

The RBI has warned of more inflation as th increase in the wholesale prices will get passed to the customers, thus decreasing the disposable income. the Wholesale Price Index increased by a 15.1% recond in April amid high commodity prices.

VINKESH GULATI said that the customers in the passenger vehicle segment would continue to witness the long waiting periods due to supply issues.

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Written by CBTEAM

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