The Federation of Automobile Dealers Associations (FADA) has published May 2022 vehicle retail data, which shows an overall growth of nearly 207% compared with May 2021 data. But again, like April 2022 data, the unusual growth rate is due to COVID-induced nationwide lockdowns during May 2021. The overall retail numbers in May 2022 are more or less the same as April 2022 numbers (16,46,773 vs 16,27,975). But anyway, in the PV segment, Mahindra & Mahindra continues to retain its 4th place, beating Kia this time by only 2,586 units. And Audi still appears to be having some serious trouble selling cars in India.
The three-wheeler and PV segments, in particular, registered a growth of nearly 696% and just over 204% last month, respectively, again, for the aforementioned reasons. Notice how every segment is not only in green but also shows a triple-digit growth as a result of lockdowns last year. FADA President Vinkesh Gulati had the following to say –
Indian auto industry during May 2022 continued its flattish run for the 3rd consecutive month. While YoY comparison with May 2021 shows an exceptionally healthy growth rate across all categories, it is important to note that both May 2021 and May 2020 were affected by nationwide lockdowns due to COVID. Hence a better comparison would be with May 2019 which was a normal pre-COVID month.
When compared with May 2019, auto retail is still not on a growth trajectory as overall retails were down by 10%. While PV and Tractors continued a positive run by growing 11% and 33%, respectively, 2W, 3W and CV are yet to show any signs of healthy run-rate (compared with pre-COVID months) as they de-grew by 14%, 19% and 11% respectively. The Government made a bold decision to cut excise duty on fuel prices thus reducing inflation and economic distress. While this will have a positive rub-off on the sale of vehicles especially 2W, the increase in 3rd party insurance premiums will act as a deterrent for some.
The 2W segment has seen a slight improvement in overall sales when compared with April 2022. While 2W EV sales were growing rapidly though on a low base, various fire incidents across almost all EV brands has created a fear in the mind of the customer. This coupled with supply chain issues, has decreased 2W EV sales drastically from last month.
The PV segment which has already surpassed May 2019 numbers is witnessing huge demand. Dealers are not able to fulfill the same due to supply-side issues. This has not only led to an increase in waiting period (ranging from 3 months to 2 years) but is also keeping the customers frustrated. Healthy booking and single-digit cancellation show that demand may stay put even when normal supply resumes in the coming months.
OEM-wise market share data for May 2022 with YoY comparison:
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