With Southern India Opening Up, We Can Expect Further Pickup In Demand. – FADA
While daily infection cases have been contained offering some respite from the debilitating second wave, however the new virus mutants and the impending 3rd wave continue to pose as risks on a longer term.
The Federation of Automobile Dealers Associations (FADA) released Vehicle Retail Data for June’21, Comparing to June 2020, all categories were in green with 2W up by 17%, 3W up by 22%, PV up by 43%, Tractor up by 14% and CV up by a massive 236%. FADA says CV growth is due to a very low base due to non-availability of BS-6 vehicles last year.
FADA President, Mr. Vinkesh Gulati said, “The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent up demand which was stuck in the system because of statewide lockdowns.
While all the categories were in green, Passenger Vehicles maintains to see good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families. Two Wheeler category though in green has witnessed a softer recovery as rural market is taking time to get back from post covid stress. Commercial vehicle segment has seen a staggering growth over last year, though on a very low base as there were product shortages due to BS-6 transition. “
All India Vehicle Retail Data for June’21
Total vehicle retail for the month of June’21 rise by 22.62% YoY, However FADA says its because we working with a very low base of JUNE 20 when the whole country was under lockdown. If compared to JUNE 19, a Pre-COVID month, retails are still down by -28.32%.
All India Vehicle Retail Data for June’21 Compared to June’19 (Pre-COVID)
% Chg, JUN'19
FADA remains cautious in its near term outlook – “Continued global semi-conductor shortage is impacting demand – supply mis-match thus restricting the growth of Passenger Vehicles. On one hand, while the new virus mutants and a prediction of 3rd wave in August are effecting sentiments, the revival of monsoons in July after a pause of 2 weeks and a better vaccination drive rate continues to build some hope.
We will therefore have to wait and watch how the overall economy shapes up over the next couple of months. We hence see demand to be a mixed bag and hope that recovery is back on track by the time Navratri and Diwali knocks our door. “