- 06 Jul 2022
- ICICIdirect Research
FADA PRESS RELEASE DEPICTS OVERALL VEHICLE RETAILS AT 15.5 LAKH UNITS IN JUNE 2022, DOWN 6% MOM, ~88% OF PRE-COVID LEVELS
News: As per FADA data, auto sector retail volumes in June 2022 were at 15.5 lakh units i.e. ~88% of pre-Covid levels. Within category, PV, tractor and now CV sales have surpassed their pre-Covid levels while retails are still lagging in the 2-W as well as 3-W categories
Views: YoY comparison (27% growth) is redundant due to Covid impact in base month. Demand prospects are muted in the 2-W space (especially in rural India) with inventory level being reasonable at ~20-23 days (down MoM). Inventory levels in the PV space are pegged at 15-20 days with dealers driving confidence in this space from increase in wholesale dispatches amidst improved chip availability. Going forward, with near normal economic activity, capex cycle revival and pick up in the pace of monsoon, we expect retails to be ~90-95% of pre-Covid levels
Impact: Neutral