: Passenger vehicle retail sales grow by 24 per cent in December #FinanceIndia #StockMarketNEWS Passenger vehicle retail sales grow by 24 per cent in December New Delhi, Jan 11 (KNN) The Federation

@StockMarketNEWS Mon 11 Jan, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Passenger vehicle retail sales grow by 24 per cent in December #FinanceIndia #StockMarketNEWS
Passenger vehicle retail sales grow by 24 per cent in December New Delhi, Jan 11 (KNN) The Federation of Automobile Dealers Associations (FADA) on Monday said passenger vehicle (PV) retail sales in December witnessed a year-on-year increase of 23. 99 per cent as 2,71,249 vehicles registered in the last month as compared to December 2019.

According to FADA, PV sales stood at 2, 18,775 units in December 2019 while two-wheeler sales increased 11. 88 per cent to 14, 24,620 units last month, as compared to 12, 73,318 units in December 2019.

However, Commercial vehicle sales slipped 13. 52 per cent to 51,454 units in December 2020, as against 59,497 units a year ago. Similarly, three-wheeler sales fell 52. 75 per cent to 27,715 units last month, fr0m 58,651 units in December 2019.

Tractor sales, however, grew by 35. 49 per cent to 69,105 units last month, against 51,004 units in the same month of 2019. Total sales across categories increased 11. 01 per cent to 18,44,143 units last month compared to 16,61,245 units in December 2019.

Commenting on how December’20 performed, FADA President, Vinkesh Gulati said, “Automobile registrations for the first time witnessed YoY growth in this Financial Year by growing 11 per cent in the month of December. A good crop season, better offers in the 2W segment, new launches both in PV as well as 2W and a fear of price increase in the month of January kept the demand going. Supply side issues in passenger vehicles continued for the 2nd straight month thus making waiting period as high as 8 months in select OEM vehicles.

The CV segment continues to see demand pressure even though on YoY basis the segment fell by 13. 5 per cent due to lower base. Increased intra-city goods movement continued to help SCV’s outperform M&HCV segment as Axle load norms, increased fuel & vehicle cost and higher freight rates continued to play spoilsport.

Tractor continues to outshine supply for 6 straight months further confirming the fact that Bharat carries on to lead India’s economic recovery, he added. ”

While December saw good spill over demand continuing fr0m festive season and pre-buying due to price hike announcement, demand for vehicles in January looks to be bleak.

PV may witness growth if demand supply mismatch is resolved. With recent hikes announced by all OEMs, FADA expects a temporary blip in demand as customers will take time to absorb the same, Gulati asserted.

Gulati noted that with the vaccination program for COVID-19 in the works, there were chances of return of normalcy and business as usual.

The government’s approval for Rs 12,000 crore infrastructure projects will see its positive effects in the CV space, though full recovery is only expected in all the segments of the industry fr0m April’21 onwards, he added.