PV retail sales dip 4% in January as chip shortage impacts vertical: FADA

Automobile dealers' body FADA on Tuesday said passenger vehicle (PV) retail sales in January witnessed a year-on-year decline of 4.46 per cent to 2,81,666 units, as semiconductor shortage impacted the segment.

File photo used for representational purpose (Bloomberg)
File photo used for representational purpose

According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,273 out of the 1,480 regional transport offices (RTOs), PV sales stood at 2,94,817 units in January2020.

Two-wheeler sales declined 8.78 per cent to 11,63,322 units last month, as compared to 12,75,308 units in January 2020.

Commercial vehicle sales also slipped 24.99 per cent to 55,835 units, as against 74,439 units a year ago.

Similarly, three-wheeler sales fell 51.31 per cent to 31,059 units last month, from 63,785 units in the year-ago period.

Also Read : Asian chipmakers rush to boost production to meet global shortage

Tractor sales, however, grew by 11.14 per cent to 60,754 units last month, against 54,662 units in the same month the previous year.

Total sales across categories declined 9.66 per cent to 15,92,636 units last month compared to 17,63,011 units in the year-ago period.

Commenting on the sales data, FADA President Vinkesh Gulati said after witnessing a one-off growth in December, January registrations fell once again by 10 per cent year-on-year.

Representational photo
Representational photo
Representational photo
Representational photo

"Auto industry clearly misjudged the demand which returned post lockdown. Industry's underestimation of postcovid rebound along with chipmakers prioritising higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors," he noted.

This has resulted in a shortage in supply for all categories of vehicles, especially passenger vehicles, even though enquiry levels and bookings remained high, Gulati said.

Semiconductors are silicon chips that cater to control and memory functions in products ranging from automobiles, computers and cellphones to various other electronic items.

Also Read : Vehicle registration falls in January, tractors only saving grace)

The usage of semiconductors in the auto industry has gone up globally in recent times, with new models coming with more and more electronic features such as Bluetooth connectivity and driver-assist, navigation and hybrid-electric systems.

Gulati said the recent price hike is undertaken by companies and added to woes as two-wheelers have become more expensive for lower and middle-income classes. Similarly, commercial vehicle registrations were also hit due to vehicle financing still not back to average and high BS 6 cost, Gulati said.

"With a high base and continued shortage of semiconductors on the one hand and the gradual opening of academic institutes and business as usual along with COVID vaccine's effectiveness on the other, FADA continues to remain guarded in its optimism for auto registrations during the fourth quarter of this financial year," he added.

First Published Date: 09 Feb 2021, 17:29 PM IST
Shopping Bag Shop Now
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Cool Aqua (7.5g)
Rs. 99
70% OFF
VENO Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable (2 in 1 Vacuum Cleaner)
Rs. 899 Rs. 2,999
SHAYONAM Dent Removal Kit - Powerful Car Dent Repair Kit - Suction Cup Dent Puller Handle Lifter and Dent Repair Puller for Car Body Dent, Glass, Tiles and Mirror (Plastic)
Rs. 349
Godrej aer O – Hanging Car Air Freshener | Car Accessories | Musk After Smoke (7.5g)
Rs. 99

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
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.