New Delhi: Passenger vehicle registrations were down 19.44% year-on-year to 2,40,234 units in November 2021 due to the continued shortage of semiconductors, according to data shared by the Federation of Automobile Dealers Associations ( FADA) based on VAHAN.
Retail sales of two-wheelers fell 0.75% to 14,335,855 units, from 14,442,762 units in November 2020.
According to the dealership body report, the total number of vehicle registrations at regional transport offices (RTOs), which are sales agents, fell 2.70% to 18 17,600 units compared to November of last year.
All segments were in red with the exception of three-wheelers and utility vehicles.
FADA President Vinkesh Gulati said: “Automotive retail sales in November continued to be negative despite Diwali and the wedding season. The rains in the southern states marred the party again. Until rural India begins to show signs of strength, overall retail sales will continue to remain weak. “
“While the 2W segment saw sales almost at par compared to last year (which was itself a bad year), overall sentiment remained low as the wedding season also did not help. recovery, except in one or two states. Apart from that, crop losses due to relentless rains and flooding in the southern states, high purchase price as well as fuel costs kept customers away. In addition, there is no sign of increasing investigation levels which is of greater concern, ”he said.
“PV continues to face the full brunt of the semiconductor shortage. While new launches keep customers interested, it is only the lack of supply that keeps sales from closing. The extended waiting period is now starting to make customers nervous and this can lead to a loss of interest in purchasing vehicles, ”Gulati added.
Commercial vehicles grew 13.32% to 57,389 units in November 2021 from 50,644 units in November 2020. While the LCV segment recorded a 1.60% year-on-year decline, light commercial vehicles and HCV recorded growth of 51.08% and 74.54% respectively.
According to the President of FADA, the CV segment continues to be successful in the M & VHC segment. Helped by a weak base, this translated into double-digit growth. The bus segment is still witnessing dry running as educational institutions remain closed. With diesel prices at record highs, the supply of CNG vehicles is unable to meet demand. The lack of liquidity and the unavailability of funding for customers who have resorted to the moratorium are also a barrier to sales.
Retail sales growth was highest for three-wheelers, which reported 40,493 units in November this year, compared to 24,269 units in the corresponding month last year.
Regarding the short-term outlook, Gulati expressed apprehension about the impact this could have on the market.
“FADA hopes that the chip shortage will ease in a few months and therefore reduce the waiting period for vehicles and help increase sales. On the 2W front, we once again call on all OEMs to announce attractive programs that can drive sales growth. FADA further asks them to work systematically on a 21-day inventory cycle, ”he said.
The dealership body has said it remains extremely cautious and hopes India does not see a third wave with the new variant of Covid. We also urge the central government as well as all state governments to aggressively drive vaccination coverage so that India is not caught off guard and recovery to pre-covid levels is not jeopardized, said Gulati. .