Sun. Nov 27th, 2022

Retail sales of passenger vehicles in the country rose 40 percent in June, signaling an improvement in the supply of semiconductors, even as demand, especially for SUVs, remained strong, the car dealership body said on Tuesday. FADA automobiles.

According to the Federation of Automobile Dealers Associations (FADA), passenger vehicle (PV) registrations increased to 260,683 units last month, compared to 185,998 units in June 2021, registering an increase of 40 percent .

“The photovoltaic segment continued to see solid growth. An increase in shipments clearly shows that the availability of semiconductors is now easier,” FADA president Vinkesh Gulati said in a statement.

However, due to chip shortages, waiting periods, especially in the compact SUV and SUV segments, remain high, it added.

Despite long waiting periods, new vehicle launches are seeing strong bookings, reflecting a healthy demand pipeline, Gulati said.

Retail sales of two-wheelers last month rose 20 percent to 11,19,096 units, compared with 9,30,825 units in the same period a year earlier, FADA data showed.

Gulati noted that poor market sentiment, especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept sales of two-wheelers slow. .

Commercial vehicle retail sales also saw an 89 percent year-over-year increase last month to 67,696 units.

Three-wheeler registrations rose last month to 46,040 units, up from 14,735 units in June last year.

In addition, tractor retail sales also increased 10% to 57,340 units last month, compared to 52,289 units in June 2021.

Total retail sales increased 27 percent to 15,50,855 units in June, compared to 12,19,657 units in the same period a year earlier.

However, Gulati noted that compared to June 2019, a month before COVID-19, overall sales last month were still down 9 percent.

As for business prospects, he stated that the fact that the prices of almost all essential items have moved north has put pressure on the family budget of the common man.

In addition, high fuel prices have had an indirect effect on transportation and made it more expensive, Gulati said.

This will have a negative effect on entry-level PV as well as two-wheeler segments that are generally dominated by first-time buyers, he added.

“On the other hand, the ease in availability of semiconductors will increase the supply, especially in the photovoltaic segment and thus reduce the waiting period. If rural India stabilizes, auto retail will enter the festive season.” with a good grade,” Gulati said.

Read More: Passenger vehicle retail sales up 40 pc in June as chip supply improves