Vehicle Retail Sales Drop 5% In October 2021; Dealers Sees Worst Festive Season Numbers In Last Decade
Last month total new vehicle registrations stood at 13,64,526 units, a 5.33 per cent decline compared to October 2020. However, the dealers also saw the worst festive season in last decade with retail sales falling 18 per cent during the 42-day festive period.
Vehicle retail sales for the 42 days festive period stood at 20,90,893, a decline of over 18 per cent
The Federation of Automobile Dealers Associations (FADA) today released vehicle retail data for October 2021. Last month the total number of new vehicle registrations stood at 13,64,526 units, a 5.33 per cent decline compared to the 14,41,299 vehicles retailed in October 2020. However, the same for the 42 days festive period stood at 20,90,893, a decline of over 18 per cent compared to 25,56,335 units sold during the same period in 2020. FADA President, Vinkesh Gulati said, “We have witnessed the worst festive season in last decade. Semi-conductor shortage which was already a full-blown crisis showed its true colours when in spite of an above healthy demand, we could not cater to customer’s need.”
Passenger vehicle retails stood for October 2021 stood at 2,28,431 units, a decline of 11.38 per cent compared to 2,57,756 vehicles retailed during the same month last year. However, the degrowth more than doubles when we look at the 42-day festive period, during which, PV sales stood at 3,24,542 units, down by over 26 per cent compared to 4,39,564 units sold during the same period in 2020. FADA says SUV, Compact-SUV and luxury categories witnessed a huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their families’ healthcare needs.
Last month, two-wheeler retail sales stood at 9,96,024 units a 6 per cent decline compared to 10,60,337 units retailed in October 2020. However, during the 42-day festive period, when two-wheeler retails stood at 15,79,642 units, the decline was three folds at 18.49 per cent, as against 19,38,066 vehicles sold in 2020. “The 2W category continues to face the brunt of low sales with the entry-level category being the biggest spoilsport. The rural distress in retails coupled with frequent price hikes, triple-digit fuel prices and customers conserving funds for healthcare emergencies kept the demand low,” Gulati said.
Growth in the three-wheeler and commercial vehicle sales was the silver lining for dealers, which was otherwise mostly a dark cloud situation. Three-wheeler sales in October 2021 stood at 39,077 units, massive growth of 74 per cent compared to 22,467 units sold during the same month in 2020. The same for the 42-day festive period stood at 52,802 units, a 53.41 per cent growth compared to 34,419 three-wheelers retailed during the same period in 2020. On the other hand, CV sales for last month stood at 56,732 units, a 26.45 per cent growth as against 44,865 units sold in October 2020. At the same time, CV sales during the festive period stood at 77,066 units, a nearly 10 per cent growth compared to 70,361 units sold during the same period last year.