Car sales in June see robust growth as new launches provide surge: FADA

  • While sales of two-wheelers remains down and is a major cause of concern, demand for cars is keeping sentiments in the Indian automotive space up.

File photo used for representational purpose. (HT_PRINT)
File photo used for representational purpose.
Get Launch Updates on
Notify me

The Federation of Automobile Dealers Association (FADA) on Tuesday released vehicle retail data for the month of June and underlined the gradual return to some form of normalcy in the Indian automotive market with passenger vehicles paving the way forward. While high waiting time for select models remains a challenge, FADA notes that new model launches last month provided the boost to vehicle retail.

The data released shows all categories in the Indian automobile industry - two-wheelers, three-wheelers, passenger vehicles, tractors and commercial vehicles - registering a growth last month when compared to the Covid-19-hit month of June of 2021. Sales of passenger vehicles last month were up 40 per cent vis-a-vis June of 2021. But while retail picking up in comparison to the same period last month was on expected lines, FADA especially notes how new model launches are helping boost witnessed in the passenger vehicle segment. “The PV segment continued to see robust growth. An increase in wholesale clearly shows that semi-conductor availability is now getting easier," said Vinkesh Gulati, FADA President. “New vehicle launches are seeing robust booking thus reflecting healthy demand pipeline."

Also check these Cars

Find more Cars
Mahindra Ekuv100 (HT Auto photo)
UPCOMING
BatteryCapacity Icon40 kWh Range Icon150 Km
₹ 8.25 - 10 Lakhs
Alert Me When Launched
Hyundai Kona Electric (HT Auto photo)
BatteryCapacity Icon39.2 kWh Range Icon452 km
₹ 23.79 Lakhs
Compare
View Offers
Honda City Hybrid (HT Auto photo)
Engine Icon1498 cc FuelType IconMultiple
₹ 19 Lakhs
Compare
View Offers
Mahindra S204 (HT Auto photo)
UPCOMING
₹ 12 Lakhs
Alert Me When Launched
Mg Gloster (HT Auto photo)
Engine Icon1996 cc FuelType IconDiesel
₹ 38.80 Lakhs
Compare
View Offers
Land Rover Range Rover Sport (HT Auto photo)
Engine Icon2993 cc FuelType IconMultiple
₹ 1.64 Cr
Compare
View Offers

Most car manufacturers in the country are reporting strong demand and point to component shortage as a stumbling block. But if the situation does ease, it could be a major shot in the arm for companies which have at least two months of order bank intact. FADA, however, still points to high fuel prices and inflationary pressures as potential pain points. But the impact of these is likely to be most felt in the two-wheeler segment. Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept 2W sales at low speed," noted Gulati.

All eyes now would be on how the entire situation plays out in July and August because the following festive period is when the auto industry's performance truly signals consumer sentiments and puts out a holistic impression.

Get insights into Upcoming Cars In India, Electric Vehicles, Upcoming Bikes in India and cutting-edge technology transforming the automotive landscape.

First Published Date: 05 Jul 2022, 10:24 am IST
NEXT ARTICLE BEGINS

Check Latest Offers

Please provide your details to get Personalized Offers

Choose city
+91 | Choose city
Choose city
Select a dealer

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.