The Federation of Automobile Dealers Associations (FADA) has published October 2021 vehicle retail data, which shows an overall decline of 5.33% compared with October 2020 data. The Passenger Vehicle segment, in particular, saw a YoY decline of 11.38%. And yes, Mahindra & Mahindra lost its 4th place to Kia in the PV segment.
However, thanks to the surge in the online retail business in the country, both the three-wheeler and Commercial Vehicles segments posted a YoY growth of nearly 74% and 26.5%, respectively. But anyway, FADA President Vinkesh Gulati had the following to say –
We have witnessed the worst festive season in the last decade. Semiconductor shortage which was already a full-blown crisis showed its true colours when in spite of the above healthy demand, we could not cater to customers’ needs as SUV, compact-SUV and luxury categories witnessed a huge shortage of vehicles. On the other hand, entry-level cars saw subdued demand as customers in this category continued to conserve money due to their family healthcare needs.
The 2W category continues to face the brunt of low sales with the entry-level category being the biggest spoilsport. The rural distress in retails coupled with frequent price hikes, triple-digit fuel prices and customers conserving funds for healthcare emergencies kept the demand low. In fact, walk-ins and customer inquiries were also ultra-lean during the said period.
In CV, while entry-level and SCVs have already grown post unlocking and due to intracity goods movement, M&HCV is now showing strength due to low base and infrastructure projects coming up in different states. Buses as a category are yet to see any revival in demand. With normalcy returning in business, the 3W category has started to witness usual demand. It is noteworthy to mention that we are witnessing a tactical shift from ICE to EVs as EV share in 3W has now crossed the 45% mark.
OEM-wise market share data for October 2021 with YoY comparison:
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