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%.
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.
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.
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
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