: Automobile sales fell by 28.64 per cent YoY in March: FADA #FinanceIndia #StockMarketNEWS Automobile sales fell by 28. 64 per cent YoY in March: FADA Mumbai, Apr 8 (KNN) Cumulative automobile sales
@stockMarketNEWS Tue 13 Apr, 2021
Automobile sales fell by 28.64 per cent YoY in March: FADA #FinanceIndia #StockMarketNEWS
Automobile sales fell by 28. 64 per cent YoY in March: FADA Mumbai, Apr 8 (KNN) Cumulative automobile sales during March 2021 fell sharply by 28. 64 per cent as compared to the same month last year but grew 10. 05 per cent month-on-month (MoM) as per the latest vehicle registration data released by the Federation of Automobile Dealers Associations (FADA) on Thursday.
Tractors and Passenger Vehicles (PV) sustained its healthy momentum by growing 29. 21 per cent and 28. 39 per cent, YoY.
This growth can be associated with multiple factors like a low base of last year, a transition from BS-4 to BS-6, and India going under total lockdown, FADA said in a release.
On YoY basis, two-wheelers, three-wheelers and Commercial Vehicles (CV) fell by 35. 26 per cent, 50. 72 per cent and 42. 20 per cent, respectively.
On MoM basis, two-wheelers, three-wheelers, CV, PV and tractor sales grew by 9. 54 percent, 14. 15 per cent, 14. 15 per cent, 10. 11 per cent and 12. 60 per cent, respectively.
According to FADA, passenger vehicle waiting periods continued to hold its ground and remained as high as 7 months as scarcity of semiconductors remained put. 47 per cent PV dealers said they lost more than 20 per cent of sales due to supply-side constraints.
There was no significant change in Dealer inventory days as PV & 2W inventory remained in the range of 10-15 and 30-35 days, the industry body added.
“The second wave of COVID-19 is not only spreading faster but is also trying to destabilize the growth which India has been able to achieve in the last few months. Any lockdown at this point will severely hamper the momentum which is getting built for Auto Industry to come out of the woods,” FADA said.
Further, an increase of COVID and fear amongst consumers with last year’s sight in mind has started keeping them away from making a high ticket purchase, it added.
"The effects of the same can be seen in the 2-Wheeler category where inquiry levels are low. This coupled with semiconductor shortage will continue to hamper not only Passenger Vehicles but also Two Wheelers as ABS shortage is currently ringing alarm bells," FADA said.
Since Maharashtra contributes 10-11 per cent of the auto retail, the current Lockdown will have a catastrophic effect on overall sales for the month of April, FADA noted.
According to Pew Research, financial woes brought by COVID-19 have pushed about 32 million Indians out of the middle class, undoing years of economic gains. This had its impact on 2-wheelers as it saw one of its steepest de-growth in the last few months. This coupled with high fuel prices and price increase acted as double whammy.