Auto News ALERT! SHARP JUMP - Vehicle retail sales up by 22%, PV by 43 % on YoY; recovery likely to be back on track by Navratri, Diwali, says FADA

The vehicle retail sales has seen a sharp jump in June 2021. Total vehicle retail sales for June 2021 saw a jump of 22 per cent in June as compared to June 2020 on a low base, as per the data by the Federation of Automobile Dealers Associations (FADA). However, when compared to pre-covid year (June 19), retail vehicle sales data was still 28.32 per cent.  

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Two-wheeler retail was up by 17 per cent, three-vehicle by 22 per cent, while passengers sales figure on year-on-year basis surged by 43 per cent. Commercial vehicles retail sales jumped by 236% between the same period on a very low base due to non-availability of BS-6 vehicles.  

Meanwhile, the Federation of Automobile Dealers Associations was positive as far as retail sales figures are concerned going forward. "It said the momentum has been carried on from June to July. With Southern India opening up after several states started gradually opening up, we can expect further pickup in demand," said FADA  

However, it remained cautious of new mutant virus and impending Covid 19 third wave. "New virus mutants and the impending 3rd wave continues to pose as risks on a longer term," it said.  

The federation was also concerned about shortage of semi-conductor. It said this global shortage has been affecting passengers' vehicles growth negatively. "Continued global semi-conductor shortage is impacting demand supply mis-match thus restricting the growth of Passenger Vehicles." 

The statement from FADA, however, said it sees demand to be a mixed bag and was hopeful that recovery will be back on the track by Navratri and Diwali