Tuesday, October 04, 2022
By Kamal Swami
Auto Industry Records 11% Growth In Retail Sales
According to recent sales statistics revealed by the Federation of Automobile Dealers Association (FADA) auto retail sales recorded a growth of 11% in September 2022. In the words of Manish Raj Singhania, President of FADA, “Auto Retail for the month of September saw an overall growth of 11 per cent. September witnessed both, the inauspicious period of Shradh from September 10-25 and the festive period which began with Navratri on September 26. Due to this, the full potential for the month was not realised as it should have been”. It would be also important to note that the sales of two-wheelers have not shown any sign of improvement. Otherwise, the per cent has been a little bit higher.
Commenting on the situation, the source of FADA said, that despite the growth of 11 per cent in September 2022, the overall retail sale is 4 per cent lower compared to retail sales in September 2019. The retail sales in the segment of personal vehicles recorded a growth of 44 per cent whereas the retail sales of two-wheelers still have to show signs of growth. In a statement revealed by FADA, the retail sales of commercial vehicles have also shown a hike of 6 per cent.
Revealing the reasons for slow sales in the two-wheelers segment, the sources of FADA said, the increased cost of inputs and a hike in RBI’s rate of interest have made vehicle loans costly. However, with the arrival of the festive season, FADA expects retail sales in the auto industry will witness substantial growth. With an improvement in the supply of semiconductor chips, auto manufacturers have started boosting their production.
