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Total vehicle retail in Dec decreases 16% on-year: FADA

Total vehicle retail in Dec decreases 16% on-year: FADA

Total vehicle retailed in December was 15,58,756 units, as against December 2020’s 18,56,869 units, registering a decrease of 16.05 per cent.

Total vehicle retail slips in December Total vehicle retail slips in December

The Federation of Automobile Dealers Association stated on Wednesday that total vehicle retail decreased by 16 per cent in December year-on-year.  It decreased 6 per cent when compared to December 2019, which was a regular pre-COVID month. Three-wheeler and commercial vehicle retail was up 59 per cent and 14 per cent. However, two-wheeler, passenger vehicle and tractor retail fell by 20, 11 and 10 per cent respectively.

Total vehicle retailed in December was 15,58,756 units, as against December 2020’s 18,56,869 units, registering a decrease of 16.05 per cent. It is a fall of 6 per cent from December 2019’s 16,63,580 units.

FADA stated that passenger vehicles continued to face the brunt of the semi-conductor shortage that saw long waiting periods. The association added that two-wheeler sales show no sign of recovery. Customers too are appearing to be cautious with the rising cases of COVID-19, which could signal in the third wave. Rural sentiments are also not looking bright.

Vehicle retail dips in Dec

Medium and heavy commercial vehicle segments witnessed a healthy growth, but with a low base, to bring commercial vehicle sales at almost pre-COVID levels.

FADA President Vinkesh Gulati said, “The month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of year. It was however not the case this time around as retail sales continued to disappoint, thus wrapping up an underperforming calendar year.”

Gulati stated that despite good bookings, December closed in red due to the continued shortage of semi-conductors. High cost of ownership, bad rural sentiment, work from home and the latest threat of omicron continued to impact sales of two-wheelers, he said.

“CV segment continues to rise with M&HCV outshining LCV’s. The government’s push for infrastructure spending especially road infrastructure, better freight rates, price hike announcement in January and a low base helped the overall segment close in positive double digits,” he added.

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