The Federation of Automobile Dealers Associations (FADA) has published August 2021 vehicle retail data, which shows a total growth of nearly 14.5% compared to August 2020 data. The Passenger Vehicles segment, in particular, registered a growth of nearly 39% last month compared to August 2020. Also, Mahindra continues to retain its 4th place in the PV segment.
The Commercial Vehicles segment continues to show robust growth with nearly 98% growth in August 2021 compared to the same period last year, and so is the three-wheeler segment with nearly 80% over August 2020. FADA President Vinkesh Gulati had the following to say –
Auto Dealers are facing the most challenging phase of their business career as COVID-19 after-effect continues to play spoil-sport. While until last year, when demand was a challenge, supply is becoming a bigger problem currently due to shortage of semiconductors, even though there is high demand for passenger vehicles. Every dealer by now starts planning for a bigger offtake in anticipation of a bumper festive but due to supply issues, inventory levels are at their lowest levels during this Financial Year.
The 2W market is highly price sensitive. With multiple price hikes, increased fuel cost coupled with Educational Institutions remaining closed, the impact could be felt on the overall segment. Customers continued to fight financial battles due to COVID-related health issues and hence remained away from dealerships resulting in low enquiry and lower sales. This has its impact on the entry-level segment which continues to face the biggest brunt.
CV segment continues to witness some recovery coming back majorly due to the low base of last year. While SCVs had already shown good recovery due to intracity goods movement, M&HCVs are picking up pace only in specific geographies where the Government is rolling out infrastructure projects. Acquisition cost post-BS6 implementation along with financers keeping away from the segment and high fuel cost continues to restrict recovery in CV demand.
OEM-wise market share data for August 2021 with YoY comparison:
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