- 06 Apr 2022
- ICICIdirect Research
FADA REPORTS 3% YOY DECLINE IN OVERALL VEHICLE RETAIL SALES FOR MARCH 2022
News: As per FADA data, auto sector retail volumes fell 3% YoY in March 2022 to 16.2 lakh units (2-W down 4%, PV down 4.9%, tractors down 8.2%, CV up 14.9% 3W up 26.6%). March 2022 retails are down ~30% vs. pre-Covid levels clocked in March 2020. For full year basis i.e. FY22, total retails were up 7.2% YoY at 1.64 crore units, led by growth in all segments except tractors
Views: March 2022 retail came almost at par with single digit decline YoY. Demand pressure eased off a bit in the 2-W space tracking single digit decline. PV sales continue to face shockwaves of chip shortages amidst elongated waiting periods. CV and 3-W space continue to witness growth, albeit on a lower base. With opening up of economy & eased chip supply constraints, we expect retails to largely average at ~90% of pre-Covid levels in April 2022
Impact: Neutral