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October will be the best party season of the decade: Auto report

October will be the best party season of the decade: Auto report

Total retail vehicle sales grew by 11 percent year-on-year in September 2022, a Federation of Automobile Dealers Associations (FADA) report said Tuesday. High ground auto retail sales were set to take place in October with 24 days of festivities out of a total of 31 days, FADA said in the report – Vehicle Retail Data for September 2022. The report said dealers expected this to be the best passenger party in a decade. its vehicle (PV) segment, as even higher sales are expected during the month.

The report said all other categories were green, except tractors, which decreased by 1.5 percent. Sales of two-wheelers (2W), three-wheelers (3W), passenger cars (PV) and commercial vehicles (CV) increased by 9 percent, 72 percent, 10 percent and 19 percent respectively. Compared to September 2019, a pre-Covid month, total car sales remained 4 percent lower. The PV segment maintained its healthy run with growth of 44 percent. Similarly, growth in 3W, tractor and CV also closed in green at 6 percent, 37 percent and 17 percent, respectively. Only the 2W segment remains a drag, as the same fell 14 percent.

Rural India in states like Himachal Pradesh, Haryana, Uttarakhand, Uttar Pradesh and Jharkhand showed weakness with a lower contribution to auto retail, especially in the entry-level category – 2W and PV, the report said. While total PV retail sales will be ten-year highs during this holiday season, it’s the 2W category where the auto industry continues to place hopes for healthy growth. FADA President Manish Raj Singhania said: “Automotive retailing for the month of September 2022 had an overall growth of 11 percent. September witnessed both the inauspicious period of Sradh from September 10-25 and the festive period that started with Navratri on September 26. As a result, the full potential for the month was not realized as it should have been.”

The 2W segment grew 9 percent yoy, but declined 14 percent as of September 2019. Due to higher input costs, 2W companies have increased prices five times in the past year. Aside from that, the Reserve Bank of India’s (RBI) fight against inflation caused interest rates to rise, leaving car loans expensive. The report said that while India showed signs of upturn, Bharat has yet to perform and 2W, especially the entry-level vehicles, are finding extremely fewer buyers, dragging the entire segment. The 3W segment continued to see a structural shift from internal combustion engine (ICE) to electric vehicle (EV), according to the FADA report. This is also reflected in an extremely healthy growth of e-rickshaws. Apart from increased availability of vehicles with a full range of products, including alternative fuels, customers have started to use public transport and rickshaw service, fueling demand in this segment.

While the CV segment grew 19 percent, it was the heavy-duty vehicle (HCV) segment that showed healthy growth of 40 percent yoy, the FADA report said. Reasons such as better vehicle availability, festivities, bulk fleet purchase and continued government pressure on infrastructure development made this segment shine. The report also added that the PV segment continued its ‘Bolt’ run, growing 10 percent yoy and 44 percent compared to September 2019, a pre-Covid month. The report said: “Better availability thanks to the easing of semiconductor supply, new launches and feature-rich products kept customers from dealers for obtaining their favorite vehicles during the favorable period. Waiting time continues to vary between three months and 24 months , especially for SUVs and compact SUVs, which have become the absolute choice for today’s customers.” (ANI)

(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)