India: India auto industry left waiting to take the highway with disappointing August sales

India’s automobile industry remained stuck on the slow lane as August car sales were disappointing, but the engine is expected to improve with the passenger vehicle segment forecasting its best celebrations in a decade.

Overall vehicle retail sales rose 8.3% to 15,21,490 in August, but fell 7.5% compared to prior August 2019, according to data from Federation of Automobile Dealers Associations.

FADA President Manish Raj said, “August opens the door for the festival season. Dealers had expected a good Ganesh Chaturthi in August, but the results so far have not been encouraging. Despite a good monsoon, the festival season during Ganpati The season has started.” Singhania said.

Compared to August 2019, Passenger Vehicles segment grew by 41% and Commercial Vehicles sales grew by 6.2%. However, all other segments were in the red, with two-wheelers (2W), three-wheelers (3W) and tractors falling 15.9%, 0.7% and 7.2%, respectively.

Passenger and commercial vehicle retail rose 6.5% and 24.1% from a year ago to 2,74,448 and 67,158. Tractor sales declined 31.7% year over year to 49,305.

“While the 2W segment has grown by 8.5%, it continues to face the Covid blues due to poor performance of India (Rural India) and is still not above 2019 levels. has been made out of reach for most of the entry-level customers. With an erratic monsoon, crop yields have been low and flood-like conditions have restricted the movement of customers,” FADA said.

The increase in 3W nonetheless indicates a preference for internal combustion engine (ICE) electric vehicles, which continue to see double-digit declines compared to precovid levels.

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Demand for all PV sub-categories of vehicles, except entry level, remains strong owing to the new feature-rich launches that OEMs have been doing over the past few months.

The apex body for India’s automobile retail industry said, “With the semi-conductor shortage gradually easing, vehicle availability has certainly improved, but the waiting period remains due to higher demand in high-convenience variants.” Is.”

Moving forward, September brings with it Onam and Navratri, but it also brings with it the 15-day period of Shradh which is generally considered an inauspicious period for buying a vehicle.

However, the country’s apex body for auto dealers has turned from a cautious optimist to an optimistic one.

“With the ease of supply, the PV segment will surely witness the best celebrations (Navratri and Diwali) in the last 1 decade so far. Also, if vehicle prices remain stable and there is no health hazard So, we can see an uptick in the much-awaited 2W space, which hasn’t shown the expected growth since the last festivals.”