FADA: Car sales continue upward trend, grow by 11 per cent in May 2022
As per the latest retail sales data released by the Federation of Automobile Dealers Association for May 2022, passenger vehicle sales have continued their steady upward trend this month too. While overall auto sales will still 10 per cent below pre-COVID levels, passenger vehicle sales grew by 11 per cent as compared to May 2019.
Car sales May 2022 India
In May 2022, 2,63,152 cars were sold in India. This is a significant 204 per cent increase over May 2021, when COVID19 was still rampant. More encouragingly, this figure is 11.4 per cent more than the 2,36,215 units sold in May 2019, which was a good year for the auto industry before COVID. With the supply constraints still a major factor, dealers are seeing healthy order books and customers' long waiting periods. A steady stream of bookings and a low percentage of cancellations suggest this demand will persist even after the supply constraints are brought under control.
However, the current inflationary trends seen in India are a detriment to car sales growing to their full potential. In a positive note, the excise-duty cut on fuel prices will improve demand for vehicles, although this will be most beneficial to the two-wheeler segment according to FADA.
Maruti Suzuki holds ground
The recent spate of new launches by Maruti Suzuki seems to be helping. The country's largest carmaker had seen its market share slide in recent months but that now arrested that drop by holding on to a 42.03 per cent share, only a slight dip from 42.51 per cent in May 21. Hyundai India though continues to lose ground to the home-grown duo of Tata Motors and Mahindra. The Korean brand saw its market share dip to 14.56 per cent in May 2022 from 18.76 per cent in the same period last year. Tata Motors continued its rapid growth story, cornering 13.43 per cent of the market from 10.96 per cent last year. Mahindra had 7.49 per cent, up from 6.47 per cent.
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