- 11 Oct 2022
- ICICIdirect Research
FADA releases retail data for Navratri 2022
As per a FADA press release, total vehicle retails during the Navratri 2022 season were at 5.4 lakh units, up 57% YoY, which is also up 16% from pre-Covid levels (Navratri 2019). Healthy growth was witnessed across vehicle categories with the PV space leading the growth charge (up 70% YoY, up 59% from pre-Covid levels). Encouragingly, 2-W retails are also up ~4% from pre-Covid levels in the same period.
The current normal festive season comes after a gap of two years amid Covid incidence in the past. The expectations are ripe for a record festive season this year and bodes well for the domestic automobile space. We are positive on the automobile sector amid expectation of double digit volume growth in the near term coupled with RM price decline leading to even better earnings growth. Our preferred space is the passenger vehicle, premium 2-W and commercial vehicle domain.