Passenger vehicle retail sales surge 63%, reach pre-Covid level: FADA
Passenger vehicle retail sales in India has witnessed a growth of 62.90% in July 2021 to 261,744 units, as compared to the same month a year ago. The domestic auto industry recorded 160,681 units of passenger vehicle registrations in July 2020. Federation of Automobile Dealers Association (FADA) says the growth in the PV segment is majorly attributed to the high demand for compact SUVs.
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The passenger vehicle registrations across India has also increased on the back of loosening Covid-19 restrictions in different states, reopening of the economy and surging demand for personal mobility as well. Also, low base numbers due to last year's Covid-19 lockdown is another reason behind this retail growth.
Last month's PV sales in India have also registered 24.27% growth compared to July 2019. The industry registered 210,626 units in July 2019. This means PV sales in the country have reached to pre-Covid levels.
FADA also claims that the waiting period due to microchip crisis constraints have been persisting for the last couple of months and is now becoming a deep routed issue for OEMs. It also said that August is witnessing positive demand and improving enquiry levels across all categories.
The two-wheeler segment too has witnessed positive demand in July this year, claims FADA. The recovery in this segment is sluggish due to the poor disposable income of consumers. High impact of the Covid-19 pandemic's second wave in rural markets too is slowing down the recovery pace.
The segment registered 11,32,611 units of retail sales last month, up 27.56% from 8,87,937 units in July last year. However, sales remained 19.07% lower than 13,99,409 units of July 2019.
Total vehicle registrations across the country have increased to 15,56,777 units in July 2021, up 34.12% from the same month last year, when the industry registered 11,60,721 units. However, vehicle retail sales were down by 13% last month compared to July 2019.
Speaking about the auto industry's retail performance in July 2021, Vinkesh Gulati, president, FADA, said that with the entire country now open, July saw a robust recovery in auto retails as demand across all categories was high. "The low base effect also continues to play its part," he further added.