”Passenger vehicles continue to see high demand and long waiting periods as semiconductor availability still remains a challenge, even though supplies slightly improved from previous month,” FADA President Vinkesh Gulati noted
New Delhi:
Domestic passenger vehicle retail sales in March declined by 4.87 per cent to 2,71,358 units, as compared to the same month last year, automobile dealers’ body FADA said on Tuesday.
According to the Federation of Automobile Dealers Associations (FADA), PV sales stood at 2,85,240 units in March 2021.
”Passenger vehicles continue to see high demand and long waiting periods as semiconductor availability still remains a challenge, even though supplies slightly improved from previous month,” FADA President Vinkesh Gulati noted.
The Russia-Ukraine war and China lockdown will further dent supplies and will hit vehicle deliveries, he added.
Two-wheeler sales declined by 4.02 per cent to 11,57,681 units last month, as compared to 12,06,191 units in the year-ago period.
”The two-wheeler segment was already a non performer due to rural distress. It saw further dampening due to rise in vehicle ownership cost coupled with rising fuel cost,” Gulati stated.
Commercial vehicle sales were up 14.91 per cent to 77,938 units, as compared to 67,828 units in March last year.
Three-wheeler sales were also up 26.61 per cent to 48,284 units last month, as compared to 38,135 units in March 2021.
Total sales across categories, however, declined by 2.87 per cent to 16,19,181 units last month, as against 16,66,996 units in the same month last year.
According to FADA’s outlook , with impact of Covid lockdown during last two Aprils in FY20 and FY21, April 2022 will see growth, though on low base.
“The near term outlook for Indian auto industry continues to remain a challenge as the on-going Russia-Ukraine war and China lockdown does not hint towards a smooth path. Crude is on a boil and hence fuel prices have been raised by around Rs 10,” it said.
“This will continue to rise and further hit sentiments on lowering the spending. Along with this, increase in raw material costs have made OEMs increase the prices of their vehicles. While no dent in terms of demand has been seen in PV segment, it will definitely have its impact on 2W segment which is an extremely price sensitive market.”