Retail auto sales accelerate in July as COVID restrictions ease across the country
Retail auto sales in India rebounded strongly in July with the opening of dealerships across the country as restrictions imposed by COVID were relaxed in affected states, the FADA dealer body said on Monday.
All vehicle segments, including passenger vehicles, two-wheelers and utility vehicles, saw strong sales growth last month.
Total sales increased 34 percent to 15,567,777 units in July, compared to 11,60,721 units in the same month last year.
“With the whole country now open, July was marked by a solid recovery in retail auto sales, with demand in all categories remaining high. In addition, the weak base effect also continues to play its role, ” Federation of Automobile Dealers Associations (FADA) President Vinkesh Gulati said in a statement.
Passenger vehicle sales rose 63% to 2,61,744 units last month, up from 1,60,681 units in July 2020.
Gulati noted that the segment has seen strong demand with a buzz around new launches and compact SUV models.
However, long wait times due to supply side constraints have persisted for the past few months and are becoming a source of concern for original equipment manufacturers (OEMs), he added.
Sales of two-wheelers increased 28% to 11 32,611 units last month, up from 8 87,937 units in July 2020.
The two-wheeler segment continues to experience positive year-over-year demand. However, the recovery rate remains slow as customers at the bottom of the pyramid suffer from low disposable income and rural markets where COVID cases were high during the second wave, ” Gulati noted.
Retail sales of commercial vehicles more than doubled in July to 52,130 units, from 19,602 units in the same month last year.
Gulati noted that the segment is growing due to increased demand, especially in the medium and heavy commercial vehicle (M & HCV) segment, with the government rolling out infrastructure projects in many parts of the country.
Regarding the business outlook, he added that August started on a positive note as demand and survey levels continue to improve across all categories.
With IMD forecasting a normal monsoon during the August-September period, planting operations will gradually resume. This will have an erasing effect on rural sales, especially in the tractor segment, ” Gulati said.
In July, tractor sales rose 7% to 82,388 units, from 77,257 units in July 2020.
Gulati said the semiconductor shortage problem is now becoming a deeply rooted issue for the passenger vehicle (PV) segment which is now above the pre-pandemic mark.
FADA has been raising the red flag for some time on the mismatch between demand and supply, he added.
In an internal survey conducted by FADA, 60% of resellers in the PV segment said they had at least two months of waiting time for some variants. Likewise, 35% of dealers also said that the waiting period is more than four months for some variants, ”said Gulati.
Besides the shortage of chips, the delta variant of COVID if it becomes disproportionate can be another deterrent and hamper the recovery of automotive retailing as India enters the months of the holiday season, he said. note.
FADA said it collected vehicle registration data from 1,305 of 1,519 regional transport offices (RTOs).
Founded in 1964, FADA is the national umbrella body for the automotive retail industry in the country. It represents over 15,000 car dealerships with 26,500 dealers across India.
(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)