Retail figures for the automobile market in India continued their positive run in the month of June 2022. On a YoY basis, total vehicle retail for June 2022 increased by 27%. However, compared with June 2019, total vehicle retail was down by 9%.
As FADA pointed out, increased wholesale reflects ease in semiconductor availability, thus reducing supply-side constraints going ahead.
2Ws Behind June 2019
A total of 1,119,096 two-wheelers were retailed by different OEMs in India during 2022. These figures, when compared with June 2021, posted a growth of 20.23% but were down by 16.37% compared to June 2019.
Vinkesh Gulati, President, FADA, noted that the two-wheeler segment continues to be the cause of concern in the Indian automobile market. As mentioned earlier, the segment was down by 16% YoY.
He said, 'Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept 2W sales at low speed. In the 3W category, a major shift has happened in the electric category. Apart from this, permit issues and frequent price increase remained the biggest dampeners.'
The quarter-wise performance of the two-wheeler segment grew by more than 60.21% compared to Q1 FY21. A total of 3,538,718 were sold in Q1 FY22 compared to 2,207,324 units in FY21.
| CATEGORY | JUNE'22 | JUNE'21 | YoY % | JUNE'20 | % Change w.r.t JUNE'20 | JUNE'19 | % Change w.r.t JUNE'19 |
| 2W | 11,19,096 | 9,30,825 | 20.23% | 7,95,834 | 40.62% | 13,38,154 | -16.37% |
| 3W | 46,040 | 14,735 | 212.45% | 12,079 | 281.16% | 48,830 | -5.71% |
| PV | 2,60,683 | 1,85,998 | 40.15% | 1,28,374 | 103.07% | 2,05,250 | 27.01% |
| TRAC | 57,340 | 52,289 | 9.66% | 45,763 | 25.30% | 40,954 | 40.01% |
| CV | 67,696 | 35,810 | 89.04% | 10,628 | 536.96% | 65,136 | 3.93% |
| LCV | 40,349 | 21,729 | 85.69% | 8,434 | 378.41% | 38,917 | 3.68% |
| MCV | 4,709 | 2,100 | 124.24% | 79 | 5860.76% | 4,749 | -0.84% |
| HCV | 19,380 | 9,591 | 102.06% | 347 | 5485.01% | 18,928 | 2.39% |
| Others | 3,258 | 2,390 | 36.32% | 1,768 | 84.28% | 2,542 | 28.17% |
| Total | 15,50,855 | 12,19,657 | 27.16% | 9,92,678 | 56.23% | 16,98,324 | -8.68% |
3Ws Post Biggest Jump
Against 14,735 three-wheelers that were sold in June 2021, a total of 46,040 of these got shipped in June 2022. As a result, the three-wheeler sector posted growth of about 212.45% YoY. However, this segment also declined when compared to June 2019 figures. A total of 48,830 three-wheelers were sold in India in June 2019.
The quarter-wise performance of the three-wheeler segment grew by more than 212.44% compared to Q1 FY21. A total of 129,944 units were sold in Q1FY22 compared to 41,590 units shipped in FY21.
PVs Look Promising
The wholesale figures of the passenger vehicles (PV) look the most promising in the whole automotive market segment as these figures recorded superb growth in terms of YoY basis.
PV segment registered shipments of over 793,238 units during Q1FY22. These figures were only 483,163 units during Q1FY21. The difference in numbers points out towards a jump of 64.18%. The segment also grew by 17.05% compared to Q1 FY19 figures.
'The PV segment continued to see robust growth. An increase in wholesale sales clearly shows that semiconductor availability is now getting easier. The waiting period, especially in the compact SUV and SUV segment continued to remain high. New vehicle launches are seeing robust booking thus reflecting a healthy demand pipeline,' said Gulati.
A total of 260,683 units of PVs were shipped in June 2022. These figures in June 2021 were 185,998.
Commercial Vehicles Growing Strong
The commercial vehicle (CV) segment grew by over 89% in June 2022 compared to June 2021. A total of 67,696 units of CVs were sold last month as compared to 35,810 CVs that were sold in June 2021.
'CV for the first time showed a growth of 4% thus indicating recovery slowly creeping in for this segment. Bus segments along with LCVs are showing good traction,' said Gulati.
As compared to 212,886 CVs that were sold in Q1FY22, a total of 104,929 were sold in FY21, denoting a growth of 102.89%. The MCV and HCV segments showed the strongest growth among CVs compared to Q1FY19 figures.
Tractor sales also posted a 9.66% growth in June 2022 to 57,340 units in the month against 52,289 units sold in June 2021.
Will The Good Run Continue?
The Russia – Ukraine crisis has increased inflationary pressure the world over. During the recent Monetary Policy meeting, the RBI Governor also flagged high inflation as a major cause of concern. In the past few months, prices of almost all essential items have moved northwards, thereby putting pressure on the common man’s household budget and thus reducing his disposable income.
Additionally, the high fuel prices have had a spillover effect on transportation and made it expensive. This will have a negative effect on entry-level PV as well as the 2W segment, which first-time buyers generally dominate. On the other hand, ease in availability of semiconductors will see increased supply, especially in the PV segment and thus reduce the waiting period.
'If rural India stabilises, auto retail will enter the festive season on a good note,' concluded Gulati.
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