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Passenger vehicle retail sales drop 10% in Jan due to chip shortage: FADA

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3 years ago

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Passenger vehicle retail sales drop 10% in Jan due to chip shortage: FADA

Retail sales of passenger cars fell 10% in January 2022 from a year earlier as companies continued to suffer production losses due to semiconductor shortages, auto dealer agency FADA said on Monday.

Passenger vehicle (PV) sales fell to 2,58,329 units last month, down 10.12% from 2,87,424 units in January 2021.

“Despite good demand, passenger cars are bearing the brunt of semiconductor shortages, resulting in low inventories,” FADA President Vinkesh Gulati said in a statement.

Two-wheeler sales fell 13.44% to 10,17,785 units last month, compared to 11,75,832 units in January 2021.

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Rural woes coupled with rising prices and a wave of omicron have led to lower sales in the segment, Gulati said.

Tractor sales were 55,421 units last month, down 9.86% from 61,485 units in January 2021.

However, commercial vehicle sales rose 20.52% to 67,763 units last month, compared to 56,227 units a year earlier.

“As the economy recovers, the commercial vehicle segment continues to show year-on-year growth, especially in the HCV category. The overall CV segment maintains momentum as central and state governments increase infrastructure spending,” Gulati noted.

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Retail sales of tricycles also increased by 29.8% to 40,449 units in January 2022, compared to 31,162 units a year ago.

Total sales in each category fell 10.69% to 14,39,747 units last month from 16,12,130 units in January 2021.

Gulati noted that retail sales will slowly turn positive as the Omicron wave wanes.

“Semiconductor shortages are also showing some signs of easing as many PV OEMs promise better scheduling. Therefore, we expect vehicle availability to improve further,” he noted.

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With the federal budget emphasising the development of 25,000 kilometers of new highways, it will further boost infrastructure spending, thereby increasing commercial vehicle sales, Gulati said.

“Rural India has been a major driver of the two-wheeler and entry-level passenger vehicle market. The government plans to pay farmers Rs 2.3 crore MSP directly, which can be sold as two-wheelers, tractors and entry-level PV,” he said. added.

Gulati noted that the upcoming wedding season will also trigger some demand recovery in the two-wheeler market.

“Overall, FADA changed its outlook from ‘negative neutral’ to ‘neutral’ over the next few months,” he said.

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The Federation of Automobile Dealers Associations (FADA) said it has collected data from 1,386 of the 1,597 RTOs nationwide.

Complete News Source : Business Standard

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

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1 day ago

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November 21, 2024

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Oppn seeks probe into Adani charges in US: ‘Obvious protection of PM Modi’

Following US SEC charges of bribery against Gautam Adani, opposition parties criticise PM Narendra Modi and call for a JPC investigation.

As billionaire Gautam Adani faces charges in the US for alleged bribery and fraud, the Opposition on Thursday intensified its attack on the Centre over its alleged links with the Adani Group.

Gautam Adani has been charged in the US with allegedly paying $250 million in bribes to Indian officials between 2020 and 2024 to secure favourable terms for solar energy contracts. The scheme, prosecutors said, could have earned Adani’s group over $25 billion in profits.

Congress demands JPC probe

Reacting to the charges, the Congress called for a Joint Parliamentary Committee (JPC) probe into alleged scams involving Adani’s conglomerate. The party also demanded the appointment of a “new and credible” Sebi chief to investigate Adani’s financial dealings and compliance with securities laws.

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ALSO READ- At 65.2%, Maharashtra records highest voter turnout since 1995 assembly election

Congress leader Jairam Ramesh said the US Securities and Exchange Commission’s (SEC) actions highlight the failure of Indian institutions to investigate the group. “The indictment vindicates Congress’s demand since January 2023 for a JPC into the Modani scams,” Ramesh wrote on X.

He accused Prime Minister Narendra Modi of shielding Adani and claimed Congress’s “Hum Adani Ke Hain Kaun” (HAHK) series had exposed the businessman’s alleged fraud and his ties with the PM.

The fact that it has taken a foreign jurisdiction to properly investigate Adani only shows how Indian institutions have been captured by the BJP, and how decades of institutional development have been undone by greedy and power hungry leaders, the Congress leader said in another post.

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“All of this is consistent with a long record of fraud and criminality carried out with impunity with the obvious protection of the Prime Minister,” Ramesh charged.

Other Oppn leaders join attack

Other opposition leaders joined the attack. Trinamool Congress MP Saket Gokhale questioned the BJP’s involvement in Adani’s dealings and demanded an independent judicial probe.

Aam Aadmi Party leader Sanjay Singh accused PM Modi of allowing Adani to tarnish India’s global reputation.

ALSO READ- Adani Group shares plunge after US SEC charges, Adani Green down 16%

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Adani stocks latest updates

The allegations rattled markets, with Adani Group stocks plunging. Adani Enterprises fell 20 per cent in pre-open trade, while shares of Adani Ports, Adani Green, Adani Power, and others dropped between 7 per cent and 18 per cent.

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