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Retail vehicle sales in Aug rose 14%, CV sales up 98%
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SME Times News Bureau | 07 Sep, 2021
Dealers registered a 14.48 per cent rise in total retail sales of vehicles in August 2021, compared to the same month last year.
Total
retail vehicle sales for last month stood at 13,84,711, against
12,09,550 in August 2020, according to the data released by the
Federation of Automobile Dealers Associations (FADA) on Tuesday.
The data, however, showed that sales were lower by 14.75 per cent when compared to August 2019, a pre-covid month.
All
categories witnessed a rise in their sales. Two-wheeler sales rose by
6.66 per cent, while three-wheeler sales were up 79.70 per cent.
Personal
vehicle sales rose 38.71 per cent. Commercial vehicles sales witnessed a
robust growth of 97.94 per cent and tractor sales rose 5.50 per cent
during the month under review.
FADA President, Vinkesh Gulati
said: "Auto dealers are facing the most challenging phase of their
business career as Covid-19 after-effect continues to play spoil-sport.
While until last year, when demand was a challenge, supply is becoming a
bigger problem currently due to shortage of semi-conductors, even
though there is high demand for passenger vehicles."
He added
that every dealer by now starts planning for a bigger offtake in
anticipation of a bumper festive but due to supply issues, inventory
levels are at lowest levels during this financial year.
Noting
that the two-wheeler market is highly price sensitive, Gulati said that
with multiple price hikes, increased fuel cost coupled with educational
institutions remaining closed, the impact could be felt on the overall
segment.
"Customers continued to fight financial battle due to
Covid related health issues and hence remained away from dealerships
resulting in low enquiry and lower sales. This has its impact on the
entry level segment which continues to face the biggest brunt," said the
FADA Chairman.
He was of the view that the commercial vehicle
segment continues to witness some recovery coming back majorly due to
low base of last year.
"While SCV's had already shown good
recovery due to intra city goods movement, M&HCVs are picking up
pace only in specific geographies where the government is rolling out
infrastructure projects," he said.
Gulati, however, added that
acquisition cost post BS-6 implementation along with financers keeping
away from the segment and high fuel cost continues to restrict recovery
in CV demand.
FADA, in its statement on Tuesday noted that with
OEMs (original equipment manufacturers) drastically cutting down
productions due to unavailability of semi-conductors and ABS chips,
shortage of containers and high metal prices, customers for the first
time may not get a vehicle of their choice and lucrative schemes during
this festive season.
Further, ultra-frequent price increase is also keeping entry level buyers at bay.
Customers
especially at the bottom of the pyramid are shifting their priority
from saving instead of spending, it said, adding that this will hence
keep demand for two-wheelers a concern.
"Though, with educational
institutions slowly opening up, a ray of hope can be seen for an
improved demand in 2-wheeler category in coming months," it said.
FADA
anticipates that the near-term outlook will continue to remain a mixed
bag with personal vehicles witnessing demand-supply mismatch and
two-wheelers facing a demand crunch.
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Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
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66.20
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64.50 |
UK Pound
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87.50
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84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
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