Informist, Tuesday, Jul 5, 2022

By Kiran Murali

NEW DELHI – The Federation of Automobile Dealers Association expects retail sales of two-wheelers to hit pre-pandemic levels only by the next financial year, the industry body's president, Vinkesh Gulati, told Informist.

While retail sales in the passenger vehicle, tractor, and commercial vehicles segments have bounced back to pre-pandemic levels in the last few months, the two- and three-wheeler segments are yet to reach that milestone.

The decline in sales of three-wheelers eased in June, but two-wheeler segment remains the biggest concern for the industry, the association said. 

"If we look at the total fiscal year sales of two-wheelers, it will take another two years for the numbers to be back to pre-pandemic levels," Gulati said.

The hype around electric vehicles was also adding to the confusion and keeping potential buyers away, he said. With the buzz that two-wheelers will be fully electric within a few years, consumers have been left confused, as they are not looking for a product for merely two or three years, Gulati said.

He pointed out that today, only 3% of the two-wheeler dealers in the country sell electric models. With 97% of dealers not selling electric two-wheelers, it is difficult for the market to grow, he said.

"Within a time of six months or one year, we will see electric two-wheelers establish themselves. And within a year or so, the four legacy players who are playing hide-and-seek with electric vehicles, will actually come in the market and their dealers will have stocks," Gulati said.

From about 246,000 electric two-wheelers sold in 2021-22 (Apr-Mar), Gulati expects the number to cross 600,000 in 2022-23. For comparison, India sold 11.97 mln two-wheelers in 2021-22, down 29% from the number sold in 2019-20.

COMMERCIAL VEHICLES

The commercial vehicles segment saw retail sales exceed pre-pandemic levels for the first time in June. During the month, such sales rose 4%, against the pre-COVID period of June 2019, with buses and lightweight commercial vehicles showing good traction.

Going ahead, FADA is optimistic about the growth in commercial vehicles.

"Trend will be positive going forward. As of today, we do not see a challenge there," Gulati said.

He attributed this recovery and the prospects of growth to the government spending on infrastructure and changing norms on loading of vehicles.

For instance, Gulati noted that last month, the Uttar Pradesh government had brought about an order to act against overloaded vehicles. Such regulatory changes would drive up requirements of the industry, he said.  End

With inputs from Satyanarayan Iyer 

Edited by Avishek Dutta

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