The Federation of Automobile Dealers Associations (FADA) said that India’s two-wheeler demand post the festive season may remain subdued and has warned OEMs and dealers to keep a check on vehicle inventory.
The association also noted that heavy rains in certain parts of the country have led to crop damage and pent-up demand almost negligible as the festival season is coming to an end.
The vehicle demand revival is now solely dependent upon exciting year-end schemes. There will be continued growth if the supply chain issues in the PV segment are controlled.
India’s total vehicle sales in November saw positive momentum and grew by 29.32pc to 1.8mn units as compared to October, registering one of the highest growth since the easing of COVID-19-induced lockdown, however, declined by 19.29pc from the preceding year, according to the data provided by FADA.
The country’s passenger vehicle (PV) sales in November increased by 4.17pc to 291,001 units from 279,365 units in the same month last year as new launches and compact SUVs continued to show good demand.
Sales of tractors in November stood at 49,313 units, up by 8.47pc as compared to 45,462 units in the previous year due to robust demand.
Two-wheeler sales in November stood at 1.4mn units, down by 21.40pc from 1.7mn units in the year prior, while three-wheeler registrations fell significantly by 64.98pc to 24,185 units as compared to 69,056 units in Nov 2019.
Sales of commercial vehicles (CVs) decreased by 31.22pc to 50,113 units as compared to 72,863 units in the same month last year.
FADA has requested the government to increase infrastructure spending, including timely payment to vendors, and introduce an attractive incentive-based scrappage policy to revive the M&HCV segment.