7/13/22, 1:10 PM Retail Auto Sales June: Retail auto sales grow 27% in June, but lag pre-Covid

% in June, but lag pre-Covid levels - The Economic Times

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Business News › Industry › Auto › Auto News › Retail auto sales grow 27% in June, but lag pre-Covid levels

Breaking News: Rupee hits record low for a third straight session

Retail auto sales grow 27% in June, but lag pre-

Covid levels
ET Bureau Last Updated: Jul 06, 2022, 12:58 AM IST
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Synopsis

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While three-wheeler sales shrank at a slower pace of 6% compared with June 2019, it is

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the two-wheeler segment which still remains the biggest cause of concern and is not
picking up as per expectations, Gulati said. Two-wheeler retail sales increased by a fifth

Bajaj
from a year earlier to 1,119,096 units in June, but were down 16% from the same month
before Covid in 2019.

Agencies
Retail sales of automobiles increased in
strong double digits last month,
indicating a revival in demand across Finance
Fixed
sectors which were hit by the pandemic
the past two years.

Deposit
According to data available with
Representative Image
vehicle retailers' body Federation of
Automobile Dealers Association
RELATED
(FADA), 1,550,855 vehicles were retailed
Green Drive: Maruti to phase out pure
petrol vehicles in 10 years
in June, 27% more compared with the Bajaj Finance
1,219,657 units sold a year earlier. Sales,
FMCG, electronic goods see lower sales
in June vs May however, were around 9% lower
compared with the pre-Covid June
Tata Motors plans to sell half a million
cars in FY-23, electric vehicle sales will 2019.

cross one lakh units: N Chandrasekaran

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India's fuel sales soar in June The federation has compiled the
India's services industry expands at
numbers from the vehicle registration Popular in Auto
fastest pace in over 11 years data available on the road transport
1. Jaguar Land Rover
commences deliveries of new
and highways ministry's Vahan
Range Rover in India
dashboard.

2. Maruti's twin-pronged
strategy to protect, enhance
market share

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7/13/22, 1:10 PM Retail Auto Sales June: Retail auto sales grow 27% in June, but lag pre-Covid levels - The Economic Times

jaja
Bajaj Finance 3. Mercedes- Benz India
registers strong double digit

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growth in Q2

4. Luxury vehicle sales in India

FD interest rate up to
grew in strong double-digits
in first half of 2022

7.75% 5. Supply chain constraints to

continue affecting auto
sector this year, says
Mercedes-Benz India MD &
CEO

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Bajaj Finance

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Though the numbers are incomplete as some regional transport offices are
still not linked to the Vahan portal, these are seen as a good proxy for the trend
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in the automobile retail market as manufacturers only disclose their
dispatches from factories.

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Apart from passenger vehicles and tractors - which were already above pre-
Covids level for the past few months and grew 27% and 40%, respectively, in
2. Nothing phone (1) price
leaked ahead of launch;
brand teases photography
June from three years earlier - commercial vehicle sales for the first time samples
topped pre-Covid numbers with an expansion of by 4% over June 2019. FADA
president Vinkesh Gulati said this indicated that a "recovery is slowly creeping 3. Waiting time for employer-
sponsored green cards rises
in for this segment (CVs)".

While three-wheeler sales shrank at a slower pace of 6% compared with June

4. RBI allows payments for
2019, it is the two-wheeler segment which still remains the biggest cause of cross-border trade in rupee,
move to benefit trade with
concern and is not picking up as per expectations, Gulati said. Two-wheeler Russia
retail sales increased by a fifth from a year earlier to 1,119,096 units in June,
but were down 16% from the same month before Covid in 2019.

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"Poor market sentiment, especially in rural India, high cost of ownership,

inflationary pressure and June generally being a lean month due to rains kept
two-wheeler sales at a low speed," he said.

Average inventory of two-wheelers now stands at 20-23 days.

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7/13/22, 1:10 PM Retail Auto Sales June: Retail auto sales grow 27% in June, but lag pre-Covid levels - The Economic Times

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Bajaj Finance

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Even as demand remained strong in the passenger vehicle segment, Gulati
cautioned about the risk from inflationary pressures due to the Russia-
Ukraine war. The Reserve Bank of India too has said high inflation was a
major cause of concern and has increased interest rates. In the past few
Bajaj Finance
months, prices of almost all essential items have increased, putting pressure
on household budgets, reducing disposable incomes that could be spent on
Fixed Deposit
buying passenger cars.

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"Additionally, high fuel prices have had a spillover effect on transportation

and made it expensive. This will have a negative effect on entry-level Most Popular Opinion
passenger vehicles as well as the two-wheeler segment which are generally
1. BJP 2.0: A party with a difference
dominated by first-time buyers," said Gulati.

By Pranab Dhal Samanta

Average inventory for passenger vehicles currently ranges 15-20 days, as 2. Why India should become hydro hub
against the norm of 30-45 days. While availability of semiconductors has By Amitabh Kant

improved, as reflected in wholesale numbers, the waiting period, especially in

compact SUV and SUV segments, continues to remain high. The FADA said 3. Vaxx, testing, vaxx, testing...

newly launched vehicles were seeing robust bookings, indicating healthy

demand.

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If rural India stabilises, auto retail is expected to be strong in the upcoming

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