Finance ministry report on economic recovery highlights auto sales' revival
After a challenging past several months owing to Covid-19-related factors, the economy may be showing signs of revival. In a report by the Department of Economic Affairs under the Ministry of Finance, a number of indicators were mentioned which point to a revival in the economy and it included an uptick in vehicle registrations in the month of June.
DEA released its monthly economic report for June on Friday and underlined that a healthy monsoon coverage is also a sign that the country's economy is on the path towards recovery. "Rail freight continues to sustain its momentum with freight loading higher by 11 per cent in June 2021 compared to June 2019 and 20 percent higher compared to June 2020," it read. "While localised lockdowns and mobility restrictions dented automobile sales in May 2021, June data on vehicle registrations depict revitalization of demand as states unlock."
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June did bring with it some much-needed relief for the country's auto sector which was battered by the national lockdown during the first wave of Covid-19 last year. Just when sales began peaking and strong performances were being registered, the second wave and consequent state-level lockdown and restrictions dealt another whammy. The second wave - unlike the first - may have also hit the commercial vehicle segment as the pandemic spread in the hinterlands.
Even though the threat of the third wave remains omnipresent, Federation of Automobile Dealers Associations (FADA) noted that all segments within the automotive industry returned to green in June, with passenger vehicle segment leading the wave. It further predicted that upcoming festive months could boost sentiments further. (Full report here)
(With inputs from ANI)