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The new variant of Covid ‘Omicron’ has once again gripped the entire nation in fear. This will further impact the overall vehicle demand. Price rise due to high input costs and high fuel costs are continuing to add customers woes. The torrential rains in the Southern India also impacted the sales of vehicles noticed the auto federation. Overall retail sales went down 20 per cent in the auto sector.

FADA President, Vinkesh Gulati said, “Auto retail for the month of November continued to remain in negative zone despite Diwali as well as marriage season in the same month. The unwanted rains in southern states further spoiled the party. Unless rural India starts showing signs of strength, overall retails will continue to remain weak."

While the 2W segment saw almost at par sales compared to last year (which itself was a bad year), overall sentiment remained low as marriage season also didn’t help in revival except in one or two states. Apart from this, crop loss due to incessant rains and flood in southern states, high acquisition price as well as fuel costs kept the customers away. Further, there are no signs of increase in inquiry levels which is a bigger cause of concern.

PV continues to face the brunt of semi-conductor shortage. While the new launches are keeping customer’s interest high, it is only the lack of supply which is not allowing sales to conclude. The extended waiting period is now starting to make customers jittery and this may lead to loss of interest in vehicle buying.

The CV segment continues to see traction in M&HCV segment. This aided by low base resulted in double digit growth. The bus segment is still witnessing a dry run as educational institutes continue to remain closed. With diesel prices at record highs, supplies of CNG vehicles are not able to meet the demand. Tight liquidity and unavailability of finance for customers who availed moratorium are also acting as sales barrier."

On the 2W front, we once again request all OEMs to announce attractive scheme which can work as a stimulus for growth in sales. FADA additionally requests them to consistently work on a 21- days inventory cycle.

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