Retail sales of two-wheelers, passenger cars and tractors fell by 11%, 5% and 28% each, the company said in a press release. Dealers see July as a lean month before the festival season hits in August.
With increased tensions between China and Taiwan, dealers fear that another threat of a semiconductor shortage is looming. Taiwan says China’s exercises amount to a blockade — and mounting tensions could have a knock-on effect on products around the world, local media reported.
“In the 3W space, demand continued to recover, although a full recovery to pre-covid levels is still some time away. As we dig deeper, it is clear that e-rickshaws are the biggest puller in the segment. question also in the 3W passenger category shows that covid is now behind us as the passenger movement regains momentum,” said Vinkesh Gulati, president of the FADA.
“CV retail figures continue to witness good demand as government infrastructure push helps customers finalize their purchases. Apart from this, the bus segment also witnessed a start of demand recovery as educational institutions and offices return to normal operations” , he added. .
However, total car sales fell by 20% compared to July 2019, a pre-Covid month. PVs and tractors’
have grown by 19% and 7% each. 2Ws, 3Ws, CVs were down 28%, 15% and 4% each.
Data shows some weakness in rural India. “High inflation, erratic monsoons and high cost of ownership continue to keep customers at the bottom of the pyramid at bay,” Gulati said.
While India witnessed an erratic monsoon in July, Kharif slumped at the end of the month as paddy acreage fell by 13%. As a result, tractor sales, which showed good growth until a month ago, experienced a significant dip.
Average inventory for PVs and 2Ws ranges from 20-25 days and 20-23 days, respectively.
Data released earlier this month shows OEMs saw record sales of PVs in July, amid a decline in component supply issues that had disrupted production over the past year and a half.
“Even though there is a decline in the numbers in July, the industry is constantly introducing new models, especially in the compact SUV segment. In addition, better offerings in the coming months will ease customer fears due to the long wait,” said Gulati. . ,
According to industry estimates, a whopping 3,42,300 PVs have been sold at 16% year-on-year. Before that, PV sales peaked at 3.34,000 units in October 2020, data shows.