Total vehicle registrations fell by 5.33% to 13,64,526 units in October 2021 as against 14,41,299 units registered in October 2020.
The Federation of Automobile Dealers Associations (FADA), apex national body representing automobile dealers in India, on Thursday, 18 November 2021, released monthly vehicle registration data for October 2021.On a year-on-year basis, registration of three-wheeler segment was up by 74% year on year at 39,077 units and registration of commercial vehicle registration was up by 26.45% at 56,732 units in October 2021. Two-wheeler segment, private vehicle segment and tractors space declined by 6%, 11.3% and 21% respectively.
During the 42 days festive period, total vehicle retails were down by -18% year on year. Except three wheeler segment and commercial vehicle space, which were up by 53% and 10%, registrations of all the other categories were in red with two wheeler segment, private vehicle space and tractors segment declining by 18%, 26% and 23% respectively.
FADA said that this was the worst festive season in a decade for auto dealers as semi-conductor shortage in private vehicle space and low demand for entry level two wheeler segment kept the celebrations at bay.
Commenting on October 2021 registrations, Vinkesh Gulati, FADA President said, We have witnessed the worst festive season in last decade. Semi-conductor shortage which was already a full-blown crisis showed its true colours when in spite of an above healthy demand, we could not cater to customer's need as SUV, Compact-SUV and luxury categories witnessed huge shortage of vehicles. On the other hand, entry level cars saw subdued demand as customers in this category continued to conserve money due to their family's healthcare needs. The two-wheeler category continues to face the brunt of low sales with entry level category being the biggest spoilsport. The rural distress in retails coupled with frequent price hikes, triple digit fuel prices and customers conserving funds for healthcare emergencies kept the demand low. In fact, walk-in's and customer inquiries were also ultra-lean during the said period. In CV, while entry level and SCV's have already grown post unlocking and due to intra city goods movement, M&HCV is now showing strength due to low base and infrastructure projects coming up in different states. Buses as a category is yet to see any revival in demand. With normalcy returning in business, the 3W category has started to witness usual demand. This aided with extreme low base of last year, is also helping three-wheeler post a healthy growth. It is noteworthy to mention that we are witnessing a tactical shift from ICE to EV's as EV share in three-wheeler has now crossed the 45% mark.
The Nifty Auto index slumped 2.7% to 11,736.05, snapping its two-day winning run.
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