Passenger vehicle retail sales decreased about 10 per cent year-on-year in January 2022, as the firms went on to undergo production loss amid semiconductor deficit, automobile dealers’ body FADA announced on Monday. The passenger vehicle (PV) sales plunged to 2,58,329 units last month, below 10.12 per cent from 2,87,424 units in January 2021.
FADA President Vinkesh Gulati said in a statement, “In spite of good demand, passenger vehicles remain to face the brunt of semiconductor shortage, arising in the absence of a healthy inventory.” Two-wheeler sales last month slumped by 13.44 per cent to 10,17,785 units, against the 11,75,832 units in January 2021.
Gulati declared that rural distress bound with price rise and omicron wave headed to a drop in the deals in the segment. Tractor sales reached 55,421 units last month, down 9.86 per cent from 61,485 units in January 2021. Meanwhile, commercial vehicle sales, saw an increase of 20.52 per cent last month at 67,763 units, as compared to 56,227 units in the year-ago month.
Gulati also disclosed that with the revival in the economy, the commercial vehicle segment goes on to show year-on-year growth, particularly in the HCV category. With expanded infrastructure spending by the primary as well as state governments, the overall CV segment remains in momentum.
Three-wheeler retail sales also rose by 29.8 per cent to 40,449 units in January 2022 as against 31,162 units a year ago. The total sales across types last month plunged by 10.69 per cent to 14,39,747 units from 16,12,130 units in January 2021. Gulati pointed out that with the Omicron wave getting weak, the retail sales are taking off to slowly turn positive.
“Semiconductor shortage is also showing some signs of easing as many PV OEMs assure of better dispatch. We hence expect vehicle availability to improve going further,” he remarked. Gulati asserted that with the Union Budget stressing on formulating 25,000 km of new highways, it will further raise infrastructure spending, thus, boosting commercial vehicle sales.
Gulati also said, “Overall, FADA changes its outlook from ‘negative – neutral’ to ‘neutral’ for the next couple of months.” Federation of Automobile Dealers Associations (FADA) announced it has collected data from 1,386 out of 1,597 RTOs across the nation.