PV sales up 14% in FY22; two-wheeler, tractor segments under pressure: FADA

Retail auto sales in the country increased seven percent on a year-on-year basis in FY22, according to the Federation of Automobile Dealers Association (FADA). Total retail sales in March declined three percent compared with the corresponding period a year ago, and 30 percent compared with March 2020, according to FADA, a grouping of auto dealers.

Total retail sales fell 25 percent in the financial year 2021-22 compared with the financial year ended March 2020.

Data from the industry body also showed that sales of passenger vehicles increased 14 percent on year in FY22. FADA said that demand for passenger vehicles remains strong but a supply crunch persists.

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FADA mentioned that there are no signs of recovery in the auto space, with the two-wheeler and tractor segments remaining under pressure. It also said that high fuel prices are hurting consumer confidence.

Total commercial vehicle sales in the financial year ended March 31 rose 45 percent on a year-on-year basis, though tractor sales declined one percent, according to FADA.

Sales of two-wheelers saw an increase of four percent and three-wheelers 50 percent. High raw material costs will definitely have an impact on two-wheelers, FADA said.

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Data from the grouping also showed that sales of electric two-wheelers surged 463 percent on year in FY22. Sales of electric three-wheelers jumped 101 percent, according to FADA.

Sales of electric passenger vehicles zoomed 257 percent in FY22, and electric commercial vehicles 450.7 percent, it said.