Retail Auto Sales Rise In February, But Remain Below Pre-Covid Levels
Total sales rose 16% YoY to 17.75 lakh units but were 8% lower compared to the pre-Covid month of February 2020.
India's retail sales registered double-digit growth across categories in February but still remained below the pre-Covid levels as demand recovery for two-wheelers remained in the slow lane.
Total sales rose 16% year-on-year to 17.75 lakh units, according to data from the Federation of Automobile Dealers Associations. Compared to the pre-Covid month of February 2020, the total sales were 8% lower.
"The two-wheeler category witnessed a growth of 15% year-on-year but was down by 14% when compared to the pre-Covid month of February 2020. The change in OBD norms, which comes into effect from April along with marriage season, kept the sales ticking. On the whole, high inflation and poor sentiment have kept the customers at bay," Manish Raj Singhania, president of the dealers’ body, said in a statement.
Passenger vehicle sales grew 11% to 2.87 lakh units with a steady stream of new launches, an improving supply of key parts, and healthy orderbooks.
The sales of commercial vehicles also jumped 17% to 79,027 units in the month but fell 10% compared with pre-Covid sales.
However, walk-in enquiries have improved, and the transition to on-board diagnostics norms has increased demand for vehicles as prices are expected to increase from April, Singhania said.
Auto Sales In February
Passenger vehicle sales rose 11% to 2,87,182 units.
Two-wheeler sales rose 14.8% to 12.67 lakh units.
Sales of commercial vehicles grew 17.2% to 79,027 units.
Tractor sales rose 14% to 68,988 units.
Three-wheeler sales jumped 81.5% to 72,994 units.
Outlook
The dealer body expects sales in March to be supported by the better availability of vehicles, festivals like Holi, and discounting on vehicles due to this being the last month before the transition to the new emission norms.
While the month of March looks good for auto sales, on a medium-term outlook, FADA remains cautious until a better monsoon forecast is announced by IMD, it said.
The dealers’ body also underlined rural demand lagging urban markets, a sharp slowdown in private consumption expenditure, inflation, and a potentially weaker monsoon due to El Nino as key risks to the industry.