FADA indicates 9.2% YoY decline in overall vehicle retail sales for February 2022
News:As per FADA data, auto sector retail volumes fell 9.2% YoY in February to 13.7 lakh units (2-W down 10.7%, PV down 7.8%, tractors down 18.9%, CV up 7.4% 3W up 16.6%). February 2022 retails were down ~20.6% vs. pre-Covid levels clocked in February 2020.
Views: February retail came on the lower side with double digit decline YoY in 2-W & tractor segment. Demand pressure exists in the 2-W space amid high cost of ownership and muted rural demand prospects. PV sales continue to face headwinds of chip shortages with retails constrained by production at key OEMs. CV and 3-W space continue to witness growth, albeit on a lower base. With rising fuel prices coupled with re-surfaced concerns over chip availability we expect retails to largely average at ~80-85% of pre-Covid levels in March 2022.
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