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Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

Sales of passenger vehicles and tractors fell by 10.12 per cent and 9.86 per cent to 2,58,329 units and 55,421 units, respectively, in January 2022. On the other hand, sales of commercial vehicles increased by 20.52 per cent to 67,763 units as against 56,227 units in the same period last year. Sales of three wheelers were recorded at 40,449 units which was 29.80 per cent higher as compared to 31,162 units sold in the same month last year.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

In its latest press statement, FADA also said that the decline in passenger vehicle sales figures was due to semiconductor shortages. Despite good demand, passenger vehicle is bearing the brunt of semiconductor shortage, resulting in zero inventory of vehicles. On the other hand, price hike of vehicles in the two-wheeler segment and the Omicron wave impacted sales more in rural areas.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

With the economy improving, the commercial vehicle segment especially the Heavy Commercial Vehicle (HCV) category continues to grow year-on-year. With the increase in infrastructure spending by the central as well as state governments, the overall commercial vehicle segment remains in motion. In FADA’s internal survey, 55 percent of dealers said they lost 10 percent of sales due to the Omicron wave.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

According to FADA, the economy is expected to improve as the impact of the corona pandemic emerges. This will gradually improve the auto retail sector as well. Fada said the semiconductor crisis is also showing some signs of easing. Most of the passenger vehicle manufacturers have been expecting timely dispatches.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

According to FADA, the Union Budget 2022 has focused on developing 25,000 km of new highways, which will further increase the infrastructure expenditure, resulting in an increase in sales of commercial vehicles.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

With the government’s plan to direct payment of Rs 2.3 lakh crore as Minimum Support Price (MSP) to farmers, this could act as a booster for two-wheeler, tractor and entry-level personal vehicle sales. FADA said the upcoming wedding season will bring some demand improvement for the two-wheeler segment. In such a situation, there are signs of further improvement in sales in the coming time.

Sales of three wheelers and commercial vehicles increased in January 2022, car and bike market remained sluggish

Overall, FADA has changed its outlook for the next few months from ‘negative – neutral’ to ‘neutral’. FADA collected vehicle registration data from 1,386 out of 1,597 Regional Transport Offices (RTOs).

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