April 18, 2021

Auto gross sales to register a double-digit development in FY22 on a traditionally low base: ICRA

MUMBAI: Passenger and industrial car gross sales are projected to put up double-digit development subsequent monetary yr after decadal low gross sales this fiscal, however the numbers would nonetheless not match these is FY20, in response to score and analysis company ICRA.

The coronavirus pandemic dragged vehicle gross sales in India to traditionally low ranges. After registering zero gross sales in April, the trade is but to get better to month-to-month gross sales ranges seen earlier than the pandemic. FY21 gross sales are estimated to be decadal lows. ICRA predicts gross sales to extend by double-digits in FY22 given this yr’s considerably low base.

The company estimates passenger autos gross sales to develop by over 15% to about 2.5 million automobiles in FY22 over an estimated base of two.1 million models in FY21. Nevertheless, this might nonetheless be 10% decrease than the two.78 million models bought in FY20 and 26% decrease than the height gross sales of three.38 million models in FY19.

In the meantime, industrial car gross sales are estimated to develop by 25% to about 650,000 models in FY22 on an estimated base of 525,000 models in FY21. Industrial car gross sales peaked in India in FY19 to only over 1 million models. Gross sales declined by 29% to 717,688 models in FY20.

Medium and heavy industrial car gross sales are predicted to develop by 40-45% in FY22 after declining by 35-40% in FY21. M&HCV gross sales had already declined by 42% in FY20 from the height ranges in FY19.

Mild industrial car gross sales are predicted to develop between 15-20% in FY22 after an estimated decline of 17-20% in FY21. In FY20, LCV gross sales had declined by 21%.

Truck gross sales have been impacted attributable to vital over-capacity within the system. Whereas elevated rural exercise is producing some demand for LCVs, heavy autos proceed to bear the brunt of the financial slowdown.

The chance aversion amidst travellers and continued curbs on faculties and inter-state journey are impacting the demand for buses.