May auto retail sales stay lower than pre-COVID levels
The Hindu
PVs dip to 16.5 lakh units compared with 18.2 lakh in May 2019
Retail sales of passenger vehicles dipped to 16,46,773 units in May, compared with 18,22,900 units in the pre-COVID month of May 2019, according to data from the Federation of Automobile Dealers Associations (FADA). In May 2021, total vehicle retail sales had stood at 5,36,795 units amid pandemic-induced lockdowns and restrictions.
“Auto retail has still not recovered from the jitters of Covid,” FADA said in a statement. “When compared with May ‘19, total vehicle retail was down by 10%. Except PVs (passenger vehicles) and tractors, which continue to show growth of 11% and 33%, all the other categories like two-wheelers, three-wheelers and commercial vehicles (CV) fell by 14%, 19% and 11%, respectively,” it added.
Last month, PV retail sales rose 11% to 2,63,152 units from May 2019 figures. The retails in May 2021 and May 2020 – both months saw Covid-related disruptions – stood at 86,479 units and 31,951 units, respectively.
“The PV segment which has already surpassed May ’19 numbers is witnessing huge demand,” FADA president Vinkesh Gulati said. “Dealers are not be able to fulfil 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 shows that demand may stay put even when normal supply resumes in months to come,” he pointed out.
Two-wheeler sales stood at 12,22,994 units, compared with 14,20,563 units in May 2019, while it clocked 4,10,871 units in May last year. "The two-wheeler segment has seen a slight improvement in overall sales when compared with April this year," Mr. Gulati said, adding that while two-wheeler EV sales were growing rapidly though on low base, various fire incidents across almost all EV brands had created fear in the minds of customers. This, coupled with supply chain issues, had suppressed two-wheeler EV sales drastically from last month.
Commercial vehicle sales rose to 66,632 units from 17,607 units a year earlier. in May last year. It, however, remained low as compared with 75,238 units in May 2019. Similarly, three-wheeler sales remained muted last month at 41,508 compared with 51,446 units in May 2019. In May last year, retail sales stood at 5,215 units.
However, tractor sales rose to 52,487 units from 39,438 units in May 2019.