‘Auto retail sales decline 5% as two-wheelers, tractors drag’
Chip paucity hits PV stock build-up ahead of festivals: FADA
Retail sales of automobiles declined 5% last month, pulled down by a double-digit slump in sales of two-wheelers and tractors. According to data from the Federation of Automobile Dealers Associations (FADA), total retail sales in September were 12.96 lakh units compared with 13.68 lakh a year earlier.
Also Read: Chip shortage hits September sales across auto segments
While two-wheeler sales fell 11.5% to 9.14 lakh units, tractor sales slid 23.9% to 52,896 units. Sales of passenger vehicles, however, climbed 16.3% to 2.33 lakh units. Likewise, commercial vehicle retail business grew 46.6% to 58,820 units, while sales of three-wheelers rose almost 51% to 36,612 units.
When compared with September 2019, overall retail sales were lower by 13.5%, the federation said.
“The two-wheeler category continues to play spoilsport as the entry-level segment is yet to witness healthy growth,” said FADA President Vinkesh Gulati. “Semiconductor shortage has also started impacting the 150+ cc segment,” Mr. Gulati pointed out.
He added that the three-wheeler segment was showing clear signs of shift from ICE to EVs as the ratio had hit a 60:40 split. With the 42-day festival period beginning Thursday, the near-term outlook for the sector was mixed, FADA said. While dealers had raised inventory in the two-wheeler category, PV inventory was at the lowest for this year due to the chip shortage.
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