The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for October’22 and 42 days festive period. Festive’22 brings cheers to the Auto Industry as for the first time customers of every category came out in good numbers and took part in festive purchases thus making it the best in last four years.
“Auto Retail for the month of October’22 saw an overall growth of 48 percent. With most of the month under festive period, the sentiments were extremely positive across all categories of Dealership outlets. Even when compared to pre-covid month of 2019, overall retails for the first time closed in green by growing 8 percent. Except 3W, which saw a marginal dip of -0.6 percent all the other categories like 2W, PV, Trac and CV grew by 6 percent, 18 percent, 47 percent and 13 percent respectively,” said Manish Raj Singhania, FADA President.
PV segment saw the best year in a decade by outgrowing 2020 numbers by 2 percent. When compared to pre-covid festive of 2019, overall retails were up by 6 percent. All the categories were in green with 2W, 3W, CV, PV and Trac growing by 2 percent, 2 percent, 14 percent, 18 percent and 55 percent respectively.
The 2W segment showed a huge growth of 51 percent YoY (Year on Year) and for the first time, 6 percent compared to Oct’19, a pre-covid year. With both Navratri and Deepawali majorly falling in a single month, the month of October saw double foot fall at Dealerships. Dealers say that sentiments have also started improving at the rural level but the same needs to sustain for at least next 3-4 months. Apart from this, new launches and good customer schemes also played a pivotal role in helping revival in demand.
The 3W segment showed a massive growth of 66 percent YoY but was marginally below the red line in 2019 by de-growing -0.6 percent. The sub-category figures clearly show that shift is happening towards EV adoption while ICE vehicles are no more favourites. In few pockets due to permit issues, new vehicle sales have taken a hit during the month.
The PV segment showed a growth of 41 percent YoY and 18 percent when compared to 2019. PV segment continues to see extremely high demand especially in SUV and Compact SUV segments including higher variants in most of the product categories. With better vehicle availability coupled with new launches, the segment also witnessed the best Festive Period in a decade by surpassing 2020 festival sale by 2 percent.
The CV segment continues to come back on track by growing 25 percent YoY and 13 percent compared to 2019. Festivities ignited better fleet sales. With Mining and Infrastructure projects increasing in various regions, demand has been keeping well and is also coming back on track.
Most of the OEMs will now start migrating towards manufacturing OBD-2 norms vehicles. This will definitely see a steep price increase across all categories of vehicles as and when they hit the market. Also with year-end coming close, many customers wait for vehicles manufactured in the new year.