FADA numbers show overall vehicle retails in August at 93% of pre-Covid levelSBIN - 610 Change: 1.35 (0.22 %)
News: As per FADA data, auto sector retail volumes in August 2022 were at 15.2 lakh units i.e. 93% of pre-Covid levels. Within the category, PV and CV sales have surpassed their pre-Covid levels by 41% & 6%, respectively, while retails are still lagging in the 2-W, 3W & tractor space, which were down 16%, 1%, 7%, respectively.
View: Demand pressure exist in the 2-W space and is below pre-Covid levels due to unprecedented price hikes over the last two to thre years (regulatory & commodity price hike led) thereby making vehicles expensive. PV sales are expected to report healthy numbers, going forward, aided by a strong order book and upcoming festive season. CV sales, on the other hand, are expected to grow due to greater infra spend by the government. We remain positive on the PV and CV space with healthy double digit volume growth in the near term over FY22-24E.