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Total Vehicle Retail Sales Grew 37% In April 2022: FADA

The Federation of Automobile Dealers Associations (FADA) released vehicle retail data for April 2022 and total vehicle sales grew 37 per cent to nearly 16.28 lakh units in April 2022. However, the apex body cautioned against comparison with April 2020 and April 2021 numbers in the wake of the pandemic. Passenger vehicle registrations saw a 25 per cent growth to 2.64 lakh units during the month of April 2022, owing to the low base of last year. Retail sales of two-wheelers were up by 38 per cent to 11.94 lakh in April. Commercial vehicles saw an uptick of 52 per cent in April 2022. FADA also warned that long waiting period for passenger vehicles due to the ongoing Russia-Ukraine war, and China under lockdown, which would further disrupt the supply crunch as semiconductor shortage along with high metal prices and container shortage prevails. The sluggish growth could further be slowed down due to RBI's move of increasing the repo rate by 40 bps, which came in unexpectedly earlier this week.

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