- 07 Jun 2022
- ICICIdirect Research
FADA REPORTS OVERALL VEHICLE RETAILS AT 16.5 LAKH UNITS IN MAY 2022 AT ~90% OF PRE-COVID LEVELS
News: As per FADA data, auto sector retail volumes in May 2022 were at 16.5 lakh units i.e. ~90% of pre-Covid levels. Within category, PV and tractor sales have surpassed their pre-Covid levels while retails are still lagging in the 2-W, CV as well as 3-W categories
Views: YoY comparison is reduntant due to Covid impact in base months. Demand pressure exists in 2-W space with inventory level being around 23-25 days. PV sales still continue to be constrained by chip shortages. However, with gradual improvement in supply chain, this space is expected to report better numbers, going forward, aided by strong order book. Going forward, near normal economic activity, opening of schools and colleges as well as revival in capex cycle (public + private), we expect retails to be ~90-95% of pre-Covid levels
Impact: Neutral