NEW DELHI: Total auto retail sales in the financial year 2022 stood at 1,63,75,799 units, down 25% when compared with FY20 sales, according to data released by Fada. In FY20, when the auto industry was impacted by slower economic growth and transition towards BSVI emission norms, total retail sales came at 2,17,78,574 units. However, when compared with the Covid-19-hit low base of FY21 (1,52,74,314 units), retail auto sales last fiscal logged a growth of 7%. Fada anticipates the auto industry will come out of the woods and reach pre-pandemic highs by FY2024.
In the last fiscal, Passenger Vehicles (PV) retail sales witnessed a jump of 14% YoY at 27,26,047 units while two-wheeler (2W) sales stood at 1,19,73,415 units, up 4% YoY. When compared with FY20 sales, PV sales in FY22 were down by 2% and 2W sales were down by 29%.
In March 2022, retail auto sales during the month stood at 16,19,181 units as against 23,12,868 units sold in March 2020. While this is a 30% drop, on an annual basis, it fell by just 3% as total sales in March 2021 stood at 16,66,996 units.Going ahead, the industry does not see respite as Russia-Ukraine conflict has disturbed the supply chain and pushed fuel prices to record high.
Vinkesh Gulati, president, Federation of Automobile Dealers Associations (FADA), said that the near-term outlook for Indian Auto Industry continues to remain a challenge as the on-going Russia Ukraine war and China lockdown does not hint towards a smooth path.
“Crude is on a boil and hence fuel prices have been raised by around `10. This will continue to rise and further hit sentiments on lowering the spending. Along with this, increase in raw material costs have made OEMs increase the prices of their vehicles. While no dent in terms of demand has been seen in the PV segment, it will definitely have its impact on the 2W segment which is an extremely price sensitive market,” He said.
“Precious metals and neon gas which comes from the war hit zone will further slow the supply of semiconductors thus making waiting periods longer for PVs. Overall, Fada remains extremely cautious in terms of any recovery in sight until the Russia Ukraine war and China lockdown comes to an end.”