Retail sales of passenger vehicles grew last month but the sales of two-wheeler and commercial vehicles remained low compared to the pre-COVID month of May 2019, according to automobile dealers’ body FADA.
On Monday, FADA said that overall auto retails stood at 16,46,773 units in May, down from 18,22,900 units in May 2019. “May 2022 retails when compared to May 2019 reveal that sales are still not on growth trajectory as overall retails were down by 10
per cent. While PV and tractors continued its positive run… Two-wheeler, three-wheeler and CV sales are yet to show any signs of healthy run-rate,” Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati said in a statement. While Year-on-Year (Y-o-Y) comparison with May 2021 shows exceptionally healthy growth rate across all categories, it is important to note that both May 2021 and May 2020 were affected by nationwide lockdown due to the COVID pandemic, he stated. According to him, a better comparison will be with May 2019 which was a normal pre-COVID month.
Last month, the Passenger Vehicle (PV) retail sales stood at 2,63,152 units. This was 11 per cent higher compared to 2,36,215 units sold in May 2019. The retails in COVID-hit May 2021 and May 2020 stood at 86,479 units and 31,951 units, respectively.
“The PV segment which has already surpassed May 2019 numbers is witnessing huge demand. Dealers are not able to fulfil same due to supply side issues,” he said, adding that this has led to an increase in waiting period ranging from three months to two years. “Healthy booking and single digit cancellation shows that demand may stay put even when normal supply resumes in months to come,” Gulati noted.