Passenger vehicle retail sales increase by 40% after improvement in chip supply


Passenger vehicle retail sales increase by 40% after improvement in chip supply
Passenger vehicle retail sales increase by 40% after improvement in chip supply
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The country’s retail sales of passenger cars increased by 40% in June, showing better chip supply despite continued strong demand, particularly for SUVs, according to the auto dealer association FADA.

passenger vehicle retail sales increase by 40%

The number of passenger vehicle (PV) registrations increased to 2,60,683 units last month from 1,85,998 units in June 2021, representing a 40% rise, according to the Federation of Automobile Dealers Associations (FADA).

“The PV sector continued to see strong development. In a statement, FADA President Vinkesh Gulati said that a rise in dispatches “clearly implies that semiconductor availability is now getting simpler.”

However, because of a chip scarcity, waiting times are still long, particularly in the small SUV and SUV classes, he noted.

Despite lengthy waiting times, Gulati stated that new car releases are seeing strong reservations, which reflects a strong pipeline of demand.

According to FADA data, two-wheeler retail sales increased 20% last month to 11,19,096 units from 9,30,825 units in the same time the previous year.

Gulati highlighted that slow two-wheeler sales were caused by a number of factors, including negative market mood, particularly in rural India, high ownership costs, inflationary pressure, and June traditionally being a lean month because of rain.

Retail sales of commercial vehicles increased last month by 67,696 units or 89% year over year.

Compared to June of last year, when there were 14,735 three-wheeler registrations, there were 46,040 units registered last month.

Additionally, retail tractor sales grew by 10% this month to 57,340 units from 52,289 units in June 2021.

In June, overall retail sales jumped by 27% to 15,50,855 units from 12,19,657 units in the same month last year.

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However, Gulati pointed out that overall sales last month were still down 9% from June 2019, a month before COVID.

Regarding the business picture, he said that the strain on the average person’s home budget has increased as a result of the rise of practically all necessary item prices upward.

Gulati also noted that the high cost of transportation was a result of the high cost of gasoline.

The two-wheeler and entry level PV markets, which are often dominated by first-time purchasers, would suffer as a result, he warned.

On the other side, increasing supply, particularly in the PV industry, will result from easier access to semiconductors and shorten waiting times. Auto retail will start the holiday season on a strong note if rural India stabilises, according to Gulati.


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Akshat Ayush