Automobile dealers' body FADA stated today that the domestic the passenger vehicle (PV) sales dropped to 2,58,329 units in January 2022, down 10.12% from 2,87,424 units in January 2021. In spite of good demand, passenger vehicles continue to face the brunt of semiconductor shortage, resulting in the absence of a healthy inventory, FADA President Vinkesh Gulati said in a statement.
Two-wheeler sales last month declined by 13.44% to 10,17,785 units, compared to 11,75,832 units in January 2021. On YoY basis, total vehicle retail for the month of January 22 decreased by 10.70% and 18% when compared to January 20 (a regular pre-covid month). On YoY basis, 3W and CV were up by 30% and 20.5%. 2W, PV and Tractors fell by 13%, 10% and 10% respectively.
While CV and especially HCVs continue to perform well in pockets, 2W continues to show weak performance due to rural India remaining in distress. PV inventory continues to remain at historic low of 8-10 days while 2W inventory has reduced from alarming levels to 25-30 days. With the Government's plan for developing 25,000 kms of new highways, it will further build traction in India's infrastructure spending and have a positive effect for CV segment, FADA noted.
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