FADA Releases December’21 Vehicle Retail Data

On YoY basis, total vehicle retails for the month of December’21 decreases by -16%. When compared to December’19 (a regular pre-covid month), overall retails continue to fall by -6%

5^th January’22, New Delhi : The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for December’21.

December’21 Retails

Commenting on how December’21 performed, FADA President, Mr. Vinkesh Gulati said, “The month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of year. It was however not the case this time around as retail sales continued to disappoint thus wrapping up an underperforming calendar year.

With semi-conductor shortage continuing to play spoil-sport, PV sales in spite of huge bookings, in December closed in red. Dealers however saw slight ease in vehicle supply thus giving some hope of improvement.

The 2W segment however was on a different trajectory when compared to PV. High cost of ownership, bad rural sentiment, work from home and the latest threat of omicron continued to impact sales.

CV segment continues to rise with M&HCV outshining LCV’s. The government’s push for infrastructure spending especially Road infrastructure, better freight rates, price hike announcement in Jan and a low base helped the overall segment close in positive double digits.”

Near Term Outlook

As mentioned in our last Press Release, India is once again under the grip of Covid with Delta/Omicron affecting people at an ultra-fast pace. This has also ignited the 3^rd wave.

Various state governments have once again announced covid restrictions. Work and education from home have resumed and will have a negative effect for auto retail. With the fear of health care expenses rising again, the customers are shying away from closing their purchase decisions.

With IIT Kanpur predicting the peak of omicron sometimes in 1^st week of February, FADA hence remains extremely cautious over the next 2-3 months.

Key Findings from our Online Members Survey

• Inventory at the end of December’21
  • Average inventory for Passenger Vehicles ranges from 8 – 10 days
  • Average inventory for Two – Wheelers ranges from 30 – 32 days

• Liquidity
  • Good =                  45.1%
  • Neutral =             29.5%
  • Bad =                     25.4%

• Sentiment
  • Good =                 36.4%
  • Neutral =             32.9%
  • Bad =                     30.6%

• Expectation in January
  • Flat =                     39.3%
  • De-growth =       31.2%
  • Growth =             29.5%

Chart showing Vehicle Retail Data

All India Vehicle Retail Data for December’21

CATEGORY	DEC’21	DEC’20	YoY %	DEC’19	% Chg, DEC’19
2W	11,48,732	14,33,334	-19.86%	12,75,501	-9.94%
3W	44,288	27,766	59.50%	58,657	-24.50%
PV	2,44,639	2,74,605	-10.91%	2,18,881	11.77%
TRAC	62,250	69,415	-10.32%	51,024	22.00%
CV	58,847	51,749	13.72%	59,517	-1.13%
LCV	36,047	34,167	5.50%	38,268	-5.80%
MCV	4,099	2,499	64.03%	3,014	36.00%
HCV	16,066	11,278	42.45%	15,385	4.43%
Others	2,635	3,805	-30.75%	2,850	-7.54%
Total	15,58,756	18,56,869	-16.05%	16,63,580	-6.30%

Source: FADA Research

Disclaimer:

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Retail Data has been collated as on 03.01.22 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,379 out of 1,590 RTOs.
3. CV is subdivided in the following manner
   1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
   2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
   3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
   4. Others – Construction Equipment Vehicles and others