The Federation of Automobile Dealers Associations (FADA) has published November 2021 vehicle retail data, which shows an overall decline of 2.70% compared with November 2020 data. The Passenger Vehicle segment, in particular, saw a YoY decline of nearly 19.5%. And, this time, again, Mahindra & Mahindra reclaimed its 4th place in the PV segment by selling over 5,000 units more than Kia.
The two-wheeler segment appears to have recovered with a negligible 0.75% decline last month, while the three-wheeler segment continues to show strong, double-digit growth this year. The CV segment also continues to show healthy double-digit growth. FADA President Vinkesh Gulati had the following to say –
Auto retail for the month of November continued to remain in the negative zone despite Diwali as well as marriage season in the same month. The unwanted rains in southern states further spoiled the party. Unless rural India starts showing signs of strength, overall retails will continue to remain weak.
While the 2W segment saw almost at par sales compared with last year (which itself was a bad year), overall sentiment remained low as marriage season also didn’t help in revival except in one or two states. Apart from this, crop loss due to incessant rains and floods in southern states, high acquisition prices as well as fuel costs kept the customers away. Further, there are no signs of increase in inquiry levels which is a bigger cause of concern.
PV continues to face the brunt of semi-conductor shortage. While the new launches are keeping customers’ interest high, it is only the lack of supply that is not allowing sales to conclude. The extended waiting period is now starting to make customers jittery and this may lead to loss of interest in vehicle buying.
The CV segment continues to see traction in M&HCV segment. This aided by low base resulted in double-digit growth. The bus segment is still witnessing a dry run as educational institutes continue to remain closed. With diesel prices at record highs, the supply of CNG vehicles is not able to meet the demand. Tight liquidity and unavailability of finance for customers who availed moratorium are also acting as sales barriers.
OEM-wise market share data for November 2021 with YoY comparison:
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