• Total vehicle retails for the month of July’21 rise by 34.12% on YoY basis. When compared to July’19 (a regular pre-covid month), recovery is visible as the deficit reduces to low double digits of -13.22%.
• On YoY basis, all categories were in green with 2W up by 28%, 3W up by 83%, PV up by 63%, Tractor up by 7% and CV up by 166%.
• After Tractors, PV for the first time shows strong numbers by clocking 24% growth when compared to pre-covid month of July’19.
• FADA has been raising red flag about semi-conductor shortage since quite some time. The situation is now becoming grave with ever-increasing supply-side constraints.
• The delta variant and a possibility of 3^rd wave continues to remain a threat for stable Auto Retails.

New Delhi: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for July’21.

July’21 Retails

Commenting on how July’21 performed, FADA President, Mr. Vinkesh Gulati said, “With entire country now open, July continues to see robust recovery in Auto Retails as demand across all categories remain high. The low base effect also continues to play its part.

With all categories in green, CV’s continue to see increase in demand specially in M&HCV segment with the Government rolling out infrastructure projects in many parts of the country.

PV’s witnesses high demand specially with buzz around new launches and compact SUV segments. The waiting period due to supply side constraints have been persisting since quite a few months and is now becoming a deep routed issue for OEM’s.

The 2W segment though continues to see positive demand YoY, the rate of recovery remains sluggish as customers at the bottom of the pyramid suffer with poor disposable income and rural markets where covid cases were high during the 2^nd wave.

Auto Retails have now started narrowing the deficit when compared to pre-covid months. When compared to July’19, the gap reduces to low double digits of -13%. With Tractor retails already above pre-covid levels during the last month, Passenger Vehicles for the first time have reached the same by growing 24%.”

Near Term Outlook

The month of August begins on a positive note as demand and enquiry levels continue to improve across all categories. With IMD forecasting a normal monsoon during August- September period, sowing operations will pick up gradually. This will have a rub off effect on rural sales especially in Tractor segment.

On the other hand, the global semi-conductor shortage is now becoming a deep routed problem for the PV segment which is now above the pre-pandemic mark. FADA has been raising red-flag since quite some time on demand-supply mis-match.

In an internal survey conducted by FADA, 60% Dealers of PV segment said that they have at least 2 months waiting period for select variants. 35% Dealers also said that the waiting period is more than 4 months among select variants.

The delta variant of Covid if goes out of proportion can be another deterrent and put brakes on auto retail’s recovery with India entering the festive season months.

• Inventory at the end of July’21
  • Average inventory for Passenger Vehicles ranges from 30-35 days
  • Average inventory for Two – Wheelers ranges from 20-25 days