After two months of the festive season’s positive impact in October and November, retail automobile sales in India witnessed a 5 per cent dip in December 2022, according to the Federation of Automobile Dealers Associations’ (FADA’s) data. The dip was mainly due to a decline in two-wheeler (2W) sales by 11 per cent, FADA said.
FADA President Manish Raj Singhania, while commenting on how December and CY22 performed, said, “The month of December went into lull after 2 super months of October and November which witnessed adrenaline rush in the entire auto industry.”
According to the release, December saw an overall fall of 5 per cent. While all other categories were in green, it was the two-wheeler segment which once again dragged total sales by falling 11 per cent. Three-wheelers, passenger vehicles, tractors, and commercial vehicles showed growth of 42 per cent, 8 per cent, 5 per cent, and 11 per cent, respectively, during the same period.
Compared to pre-Covid month of December 2019, total retails were down by 12 per cent. The two-wheeler segment pulled down total sales as the same fell by 21 per cent. All the other categories like three-wheeler, PVs, tractors, and CVs showed growth of 4 per cent, 21 per cent, 27 per cent, and 9 per cent, respectively.
The two-wheeler segment once again failed to impress as retail sales during December continued to fall after two good months.
Reasons like rise in inflation, increased cost of ownership rural market yet to pick up fully, and increased EV sales, the ICE 2W segment is yet to see any green shoots.
On the other hand, the PV segment has continued to show remarkable consistency in growth during the entire year. While supply woes has decreased, better product spread, and ever highest consumer offers have kept consumer interest on, FADA said.
The CV segment has continued to grow during entire CY2022 and is now almost at part with CY2019 retails. With uptick in demand in LCV, HCV, Buses and Construction equipment’s, government’s continued push for infrastructure development has kept this segment going.
Key Findings
Inventory at the end of December
- Average inventory for passenger vehicles ranges from 35 – 40 days
- Average inventory for two-wheelers ranges from 25 – 30 days
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