New Delhi
Federation of Automobile Dealers Associations (FADA), the national apex body of the automobile retail industry, noted that Indian automobile sales saw an increase of 34% in July. The ease in COVID-19 restrictions and opening of dealerships led to robust sales in all vehicle segments - passenger vehicles (PVs), two-wheelers and commercial vehicles (CVs).
PV sales rose by 63% compared to July 2020, buoyed by the buzz of new launches and compact SUV models. Two-wheeler sales increased by 28%, while CV sales flourished two-fold in July 2021. Tractor sales, in particular, grew by 7%.
Vinkesh Gulati, President, FADA, noted that the two-wheeler segment showed a consistent rising demand year-on-year (YoY). For CVs, he said that the section saw an increase in demand in the medium and heavy commercial vehicles (M&HCV) segment because of the government’s new infrastructure projects.
He further shared a business outlook elaborating that August will see a positive note with demand and enquiry levels continuing to improve across segments. He added that tractor sales in the rural areas would grow due to the normal monsoon forecast by IMD in August-September.
Commenting on the semiconductor shortage, Gulati said that FADA had already raised a red flag on the demand-supply mismatch. The issue is affecting the PV segment more.
Source – Business Standard
Image Source: Image by Niek Verlaan from Pixabay
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