Auto sales up 14.5% to 1.38 million units in August
09 September 2021
Combined retail sales of vehicles in the country rose 14.48 per cent to 13,84,711 units in August 2021 compared to 12,09,550 units sold in the same month last year, according to data released by the Federation of Automobile Dealers Associations (FADA).
While retail sales of all categories of vehicles witnessed a rise on a year-on-year basis, August 2019 retail volumes were down 14.75 per cent compared to a regular monthly sales in the pre-pandemic times.
Two-wheeler sales in August rose 6.6 per cent to 9,76,051 units from 9,15,126 lakh units in the year-ago period, while passenger vehicle sales increased 38.71 per cent to 2,53,363 units from 1,82,651 units.
“Auto dealers are facing the most challenging phase of their business career as Covid-19 after-effect continues to play spoil-sport. While until last year, when demand was a challenge, supply is becoming a bigger problem currently due to shortage of semi-conductors, even though there is high demand for passenger vehicles,” said Vinkesh Gulati, president, FADA.
The commercial vehicle segment witnessed a jump of 97.94 per cent at 53,150 units compared to 26,851 units sold in the same month last year. Tractor sales for the month were up 5.5 per cent at 71,737 units against 67,999 units in August 2020.
“With OEMs drastically cutting down productions due to unavailability of semi-conductors & ABS chips, shortage of containers and high metal prices, customers for the first time may not get a vehicle of their choice and lucrative schemes during this festive season. Ultra-frequent price increase is also keeping entry-level buyers at bay,” the industry body said in a release.
According to FADA, customers, especially at the bottom of the pyramid, are shifting their priority to saving instead of spending. This will hence keep demand for 2-wheelers a concern, it said.
With educational institutions slowly opening up, FADA sees a ray of hope for an increase in demand for two-wheelers in the coming months.
FADA expects near term outlook to remain a mixed bag with passenger cars witnessing demand-supply mismatch and two-wheelers facing a demand crunch.