The month which just went by has been good for car as well as bike makers. The Federation of Automobile Dealers Associations (FADA) has said that retail sales were by up by 34.12 per cent when compared to July 2020. Last year, as we are aware, was down on sales due to the lockdown as well as general public apathy to buying something new. This year, with the lockdown eased in early June, things have been looking up and this is supported by the numbers. Passenger vehicle sales were up by 63 per cent, the bike sales were up by 28 per cent whereas the three-wheeler numbers had gone up by 83 per cent. If you look at the commercial vehicle sales and the tractor numbers, then these were up by 166 per cent and seven per cent respectively. FADA though notes that the third coronavirus wave and especially the Delta variant might throw a spanner into the works.
If we concentrate on what we have in hand now, then FADA says that auto retails have now started narrowing the deficit when compared to pre-covid months (2019). When compared to July’19, the gap reduces to low double digits of -13 per cent. With tractor sales already above pre-covid levels during July 2021, passenger vehicles for the first time have reached the same by growing 24 per cent. The global semiconductor issue though is affecting India as well. Select car and bike variants, according to dealers, have a waiting period of two months and this has even extended to double the period in some cities.
The average age of a car sitting at the dealer in July 2021 was around 35 days wherein that of a motorcycle is lesser at 25. FADA president, Vinkesh Gulati said, “With entire country now open, July continues to see robust recovery in Auto Retails as demand across all categories remain high. The low base effect also continues to play its part. With all categories in green, CVs continue to see increase in demand specially in M&HCV segment with the Government rolling out infrastructure projects in many parts of the country. PVs witnesses high demand specially with buzz around new launches and compact SUV segments. The waiting period due to supply side constraints have been persisting since quite a few months and is now becoming a deep routed issue for OEMs.”
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