Home / Auto News / Car sales may hit decadal high this festive season: Fada

Passenger vehicle (PV) sales this festive season could touch their highest levels in a decade, the Federation of Automobile Dealers Associations of India (Fada) said, adding that two-wheeler sales could also finally see an uptick this year.

Total domestic sales increased 17.7% from a year earlier in August at 187,000 cars as improving availability of semiconductor chips aided a ramp-up in production, showed data issued on Friday by the Society of Indian Automobile Manufacturers (Siam). While sales grew across segments compared to last year, two-wheeler and three-wheeler dispatches remain much below the record volumes seen prior to covid-19.

Domestic wholesale dispatches of two-wheelers and three-wheelers in August were significantly below the pre-pandemic peak volumes in 2018, indicating a much slower pace of recovery as compared to PV, where sales are nearing industry peak numbers.

While some part of the drop in two-wheeler and three-wheeler sales is explained by the corresponding rise in the electric models of these vehicles, the market for fossil fuel-driven vehicles remains significantly below the levels it achieved four years ago. Domestic two-wheeler sales in August were over 16% higher compared to the same month last year, but remain 20% below 2018 high volume of 1.94 million units.

At the same time, as vehicle production is expected to continue growing in the festive months, leading up to November, retail sales in showrooms are also playing catch-up. Vehicle registrations were up 8.3% last month on a yearly basis, but remained nearly 7.5% below a normal pre-covid baseline of August 2019, the apex dealers’ association said.

According to Fada, PV registrations jumped 41% in August compared to the pre-covid baseline; but, two-wheeler registrations fell nearly 16% while three-wheeler registrations fell 0.7%. While dealers reported that they aren’t burdened with inventory in showrooms this time, a gradual ramp-up of production before the festive season is the norm and is leading to improved stock availability. But, retail sales in these two segments is significantly behind wholesales.

“When compared with August ’19, a pre-covid month, total vehicle retails fell by 7%. While PV outperformed handsomely by growing 41%, CV also turned positive by growing 6% and thus came out of the covid blues," said Manish Raj Singhania, President, Fada.


Alisha Sachdev

Alisha Sachdev is an assistant editor with Mint based in Delhi. She reports on the auto and mobility sector, with a special focus on emerging clean mobility technologies. She also focusses on developing multimedia properties for Mint and currently hosts the 'In A Minute' series and the Mint Primer podcast. Previously, she has worked with CNBC-TV18 and NDTV.
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