Car, tractor sales on growth path, 2-wheelers on slow lane

Passenger vehicles (PVs) and tractors continued their positive retail sales run in May by growing 11 per cent and 33 per cent respectively compared with pre-Covid May 2019, the Federation of Automobile Dealers Associations or Fada said on Monday.

It said May’20 and May’21 saw nationwide lockdown during phase 1 and 2 of the pandemic. Hence, year-on-year comparison with these two years will not give a true picture of auto retail.

Last month, the 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 the same due to supply side issues,” Fada president Vinkesh Gulati said in a statement, 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 pointed out.

Tractor sales were up at 52,487 units from 39,438 units in May 2019.

The two-wheeler sales last month stood at 12,22,994 units. It was at 4,10,871 units in May last year. In May 2019, the twowheeler retails stood at 14,20,563 units.

“The two-wheeler segment has seen slight improvement in overall sales when compared with April this year,” Gulati said.

On the sales outlook, Gulati said the war continues to create demand supply mismatch.