Automobile retail sales low in May

Retail sales of passenger vehicles grew last month but sales of two wheelers and commercial vehicles remained low compared to pre-Covid level of the same period in 2019, Federation of Automobile Dealers Associations of India (FADA) said on Monday.

‘’Auto retail has still not recovered from the jitters of Covid. When compared with May 2019, total vehicle retail was down by 10%. Except PV and Tractor, which continue to show growth of 11% and 33%, all the other categories like 2W, 3W and CV fell by 14%, 19% and 11% respectively,’’ the automobile dealers’ body said.

According to data released by the FADA, overall auto retails stood at 16,46,773 units in May compared to 18,22,900 units sold in May 2019.

FADA President Vinkesh Gulati said, “Indian auto industry during May’22 continued its flattish run for the third consecutive month. While YoY comparison with May’21 shows exceptionally healthy growth rate across all categories, it is important to note that both May’21 and May’20 were affected by nation-wide lockdown due to COVID thus witnessing. Hence a better comparison will be with May’19 which was a normal pre-COVID month.’’

However, FADA said as May’20 and May’21 witnessed nationwide lockdown during phase 1 and 2 of COVID, YoY comparison with these two years will not give a true representation for the state of auto retail.

Last month passenger vehicle retail sales were 2,63, 152 units while in May 2019 it was 2,36,215 units, a growth of 11.40 per cent.

The retail sales in May 2021 was 86,479 while in May 2020 it was 31,951 units.

FADA said the government’s reduction in fuel prices will tame inflation and boost vehicle sales, especially 2W but the increase in third party insurance premiums will act as a deterrent for the 2W customers to come forward and conclude their purchase decision.