Total Vehicle Retail Sales Rose By 37 Percent In April 2022: FADA

Latest reports have been coming in from Federation of Automobile Dealers Associations cautioned comparison with the April 2020 and April 2021 period since the Indian vehicle market witnessed a country-wide lockdown during phases 1 and 2 of Covid-19.

The Federation of Automobile Dealers Associations (FADA) released vehicle retail data for April 2022. Despite a Year-on-Year (YoY) increase of 37 per cent in the total vehicle retails for the month of April 2022. 

The apex body cautioned comparison with the April 2020 and April 2021 period since the Indian vehicle market witnessed a country-wide lockdown during phases 1 and 2 of Covid-19. 

Nevertheless, all the sectors observed a green uptick, as overall sales of two-wheeler, three-wheeler, commercial vehicles, passenger vehicles, and the tractor segment increased by 37.99 per cent, 95.91 per cent, 52.18 per cent, 25.47 per cent, and 26.14 per cent, respectively.

According to the sources FADA also warned long waiting period for PVs due to the ongoing Russia – Ukraine war, and China under lockdown, which would further disrupt the supply crunch as semi-conductor shortage along with high metal prices and container shortage prevails. 

As per sources the two-wheeler segment witnessed a slight increase in sales when compared to last month but is extremely sensitive to price hikes and continues to remain below pre-covid levels. 

Apart from rural distress, multiple price hikes coupled with high fuel prices are keeping price-sensitive entry-level two-wheeler customers away.

According to the sources  Vinkesh Gulati, President, FADA while speaking to ANI has said that the month of April saw similar Auto Retail figures as of March'22. 

While YoY comparison with April'21 shows all categories in green with a high growth rate, it is important to note that both April'21 and April'20 was affected by nationwide lockdown due to phase 1 and 2 of the Covid wave which witnessed no to negligible business. 

Hence a better comparison will be with April'19 which was a normal pre-covid month.