New Delhi: Commenting on how June’21 performed, 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 state wide lockdowns.
While all the categories were in green, Passenger Vehicles maintain 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.
Overall, the Industry is still not out of the woods. When compared to June’19, we are still in red by-28% with 3W and CVs taking the max hit as they are down by-70% and -45% respectively. Only Tractors continue to grow as it was up 27% compared to June’19.
FADA is thankful to the Government of India and previous MSME Minister, Shri Nitin Gadkari for bringing entire Auto Retail under the ambit of MSME. This will definitely help Auto Dealers in multiple ways, may it be lower cost of financing or lower utility rates to name a few.
Positive momentum from June carry forwards to July. With Southern India opening up, we can expect further pickup in demand.On a longer term, Auto Industry is yet to see retail numbers comparable to FY 19.
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.
• Inventory at the end of June’21
o Average inventory for Passenger Vehicles ranges from 30-35 days
o Average inventory for Two – Wheelers ranges from 20-25 days
Chart showing Vehicle Retail Data
All India Vehicle Retail Data for June’21
|CATEGORY||JUN’21||JUN’20||YoY %||JUN’19||% Chg, JUN’19|
- The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
- Vehicle Retail Data has been collated as on 06.07.21 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,295 out of 1,498 RTOs.
- CV is subdivided in the following manner
- LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
- MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
- HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
- Others – Construction Equipment Vehicles and others