Auto retail in September sees 11 pc growth

Auto retail in September sees 11 pc growth

The Federation of Automobile Dealers Associations FADA said that vehicle sales had a healthy growth of 11 per cent in the month of September. Passenger vehicle sales increased by 9.71 per cent over the previous year. Except for tractors that dipped 1.5 per cent, all other categories including two-wheelers, three-wheelers, passenger vehicles and commercial vehicles grew 9.02 per cent, 71.94 per cent, 9.71 per cent and 18.87 per cent respectively.

FADA president Manish Raj Singhania said that Auto Retail for the month of September 22 saw an overall growth of 11%. September witnessed both the inauspicious period of Shradh a.k. A Pitru Paksha from 10 -- 25th September and a festive period beginning with Navratri on 26 September. Due to this, the full potential for the month was not realized as it should have been. Honda Motorcycle and Scooter India were the leaders in the two-wheeler segment with a market share of 27.98 per cent, followed by Hero Motocorp with a market share of 24.64 per cent. Bajaj Auto was second in the list of three-wheeler players with a market share of 30.47 per cent, with Piaggio Vehicles a distant second with 8 per cent of the market share.

When it comes to commercial vehicles, Tata Motors was the top spot with a market share of 40.17 per cent, followed by Mahindra and Mahindra with 24.54 per cent. Maruti Suzuki remained the top player in passenger vehicles with 39.88 per cent market share, followed by Hyundai and Tata Motors with 15.01 per cent and 13.98 per cent market share respectively.

Singhania said that vehicle retail fell by 4 per cent compared to September 2019 with PV segment seeing a growth of 44 per cent and three-wheelers, tractor and CV sales also closing in green with an increase of 6 per cent 37 per cent and 17 per cent respectively. The two-wheeler segment fell by as much as 14 per cent.

The 2 W companies raised prices 5 times in the past year due to increased input costs. Inflation and rate hikes were what made vehicle loans expensive, even though RBIs fight with inflation. Bharat is yet to perform, despite India showing signs of revival. The 2 W especially entry level vehicles are finding very little buyers, dragging the entire segment. The 3 W segment continues to see a shift from ICE to EV. The extremely healthy growth rate of e-rickshaws is also reflected in this, said Singhania.

In September, Himachal Pradesh, Haryana, Uttarakhan, Uttar Pradesh and Jharkhand showed weakness with a lower contribution to auto retail especially in entry level two-wheelers and passenger vehicles category, according to FADA.

FADA expects to see high auto retail sales in October due to 24 days of the festive season out of 31 days. The PV segment is expecting to have the best festive in a decade, as dealers anticipate higher sales during the month. FADA requests OEMs to match supply as per the demand so that PV sales can receive a nitro-boost, as per FADA's request for semi-conductor supply. If two-wheeler segments perform well, overall auto retail will see a higher growth than the previous two festivals.

FADA continues to remain optimistic for the month of October, due to the ongoing festive season.