April 2022 Auto Sales Show Sign Of Year-on-Year Recovery In India

Mobility Outlook Bureau
05 May 2022
12:49 PM
2 Min Read

All verticals, including 2Ws, tractors and CVs, posted over 25% growth YoY. However, only PVs and tractors category posted growth, when compared to sales posted in April 2019.

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Vehicle manufacturers and dealers would have heaved a sigh of relief looking at the sales figures for  April 2022, as shared by the Federation of Automobile Dealers Association (FADA). On a year-on-  year (YoY) basis, total vehicle retail for the month of April 2022 grew by 37% across all vehicle  segments in India. 

In fact, April saw similar auto retail figures as March 2022. Vinkesh Gulati, President, FADA, said,  while YoY comparison with April 2021 shows all categories in green with high growth rate, it is  important to note that both April 2021 and April 2020 were affected by nationwide lockdowns due  to phase 1 and 2 of the COVID pandemic, which witnessed no to negligible business. “Hence a better comparison will be with April 2019, which was a normal pre-COVID month,” he said. 

By that measure, auto sales during April 2022 slumped by over 6%, when compared to April 2019  data.

Vehicle sale data April 2022

2W, 3W Sales Remain A Concern

The two-wheeler segment, India's most selling automobile vertical, was able to post 37.99% YoY  growth in comparison to April 2021. In comparison to 865,628 2W units shipped during April 2021, a  total of 1,194,520 units of 2Ws were shipped in April 2022. But when compared to April 2019 figures  (1,338,382), April 2022 witnessed a slump of over 10%. 

“The 2W segment, which has witnessed a slight increase in sales when compared to last month is  extremely sensitive to price hikes and continues to remain below pre-COVID levels. It is a clear sign  that Bharat has not been keeping up with India. Apart from rural distress, multiple price hikes  coupled with high fuel prices are keeping the price sensitive entry level 2W customers away,” Gulati argued.

Data from the three-wheeler segment, meanwhile, also continues to be a challenge and concern  when compared to April 2019 figures. From the 48,733 units of 3Ws sold during April 2019, April  2022 marked a 13% decline to 42,396 units. The segment, however, posted a 95.91% increase in  shipments when compared to April 2021. Only 21,640 units of 3Ws were shipped during April 2021. 

“April 2022, when compared with April 2019, reveals that we are still not out of the woods as overall  retails were down by -6%. Apart from PV and tractors, which grew handsomely by 12% and 30%, 2W,  3W and commercial vehicles are yet to turn green as these categories were down by -11%, -13% and  -0.5% respectively,” added Gulati.

PV, CV Continues To Gain

The passenger and commercial vehicle categories continued to gain momentum YoY. The PV  segment posted 25.47% growth YoY in April 2022. This is, as a matter of fact, one of the only two  automobile segments that posted growth even when compared to April 2019 figures. A total of 264,342 PVs were shipped in April 2022, whereas in April 2019 only 236,217 PVs were shipped, thus resulting in an 11.9% growth. In April 2021, a total of 210,682 PVs were sold.  

Increase in shipments in the commercial vehicle category seems to be the happiest news in the  automobile industry. As against 51,515 CV units shipped in April 2021, a total of 78,398 units were  shipped in April 2022. This represents a 52.18% YoY growth. The CV sector, when compared to April  2019 data, slumped by a marginal 0.49% (78,781 shipments). 

“The CV segment after a long downturn, which began post the announcement of axle load norms in  2018, is now witnessing demand recovery as all subcategories continue to inch north. Government’s  push for infra spending further aids sales,” said Gulati. 

In Conclusion 

The Russia-Ukraine war and China lockdown, as per FADA, will continue to create demand-supply  mismatch, thus delaying the availability of PVs. This, coupled with RBI’s out-of-turn repo rate hike by  40 basis points has taken everyone off-guard. The move will curb excess liquidity in the system and  will make auto loans expensive. This move might also apply brakes and dampen the sentiments further.

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