FADA Releases June’21 Vehicle Retail Data

 8^th July 2021: The Federation of Automobile Dealers Associations (FADA) today released Vehicle Retail Data for June’21. 

 

June’21 Retails

 

Commenting on how June’21 performed, FADA President, Mr. Vinkesh Gulati said, “The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent up demand which was stuck in the system because of statewide lockdowns.

 

While all the categories were in green, Passenger Vehicles maintains to see good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families. Two Wheeler category though in green has witnessed a softer recovery as rural market is taking time to get back from post covid stress. Commercial vehicle segment has seen a staggering growth over last year, though on a very low base as there were product shortages due to BS-6 transition.

 

Overall, the Industry is still not out of the woods. When compared to June’19, we are still in red by -28% with 3W and CVs taking the max hit as they are down by -70% and -45% respectively. Only Tractors continue to grow as it was up 27% compared to June’19.

 

FADA is thankful to the Government of India and previous MSME Minister, Shri Nitin Gadkari for bringing entire Auto Retail under the ambit of MSME. This will definitely help Auto Dealers in multiple ways, may it be lower cost of financing or lower utility rates to name a few.

 

Near Term Outlook

 

Positive momentum from June carry forwards to July. With southern India opening up, we can expect further pickup in demand. On a longer term, Auto Industry is yet to see retail numbers comparable to FY 19.

 

Continued global semi-conductor shortage is impacting demand – supply mis-match thus restricting the growth of Passenger Vehicles. On one hand, while the new virus mutants and a prediction of 3^rd wave in August are effecting sentiments, the revival of monsoons in July after a pause of 2 weeks and a better vaccination drive rate continues to build some hope.

 

We will therefore have to wait and watch how the overall economy shapes up over the next couple of months. We hence see demand to be a mixed bag and hope that recovery is back on track by the time Navratri and Diwali knocks our door.

 

• Inventory at the end of June’21
• Average inventory for Passenger Vehicles ranges from 30-35 days
• Average inventory for Two – Wheelers ranges from 20-25 days

 

Chart showing Vehicle Retail Data

 

All India Vehicle Retail Data for June’21

CATEGORY	JUN'21	JUN'20	YoY %	JUN'19	% Chg, JUN'19
2W	9,30,324	7,95,819	16.90%	13,38,005	-30.47%
3W	14,732	12,077	21.98%	48,815	-69.82%
PV	1,84,134	1,28,360	43.45%	2,05,213	-10.27%
TRAC	52,261	45,735	14.27%	40,937	27.66%
CV	35,700	10,619	236.19%	65,035	-45.11%
LCV	21,650	8,428	156.88%	38,876	-44.31%
MCV	2,091	78	2580.77%	4,740	-55.89%
HCV	9,575	346	2667.34%	18,880	-49.28%
Others	2,384	1,767	34.92%	2,539	-6.10%
Total	12,17,151	9,92,610	22.62%	16,98,005	-28.32%

Source: FADA Research

Disclaimer:
The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
Vehicle Retail Data has been collated as on 06.07.21 in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,295 out of 1,498 RTOs.
CV is subdivided in the following manner
LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
Others – Construction Equipment Vehicles and others



JUN’21 Category-wise market share can be found in Annexure 1, Page No. 04



About FADA India



Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~4 million people at dealerships and service centres.



FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.