New Delhi: Car retail sales in India returned firmly in July with the opening of dealers across the country because LED Covid restrictions subsided in affected countries, said Fada dealers on Monday.
All vehicle segments, including passenger vehicles, two-wheeled vehicles and commercial vehicles reported strong sales growth last month.
Total sales saw a 34 percent increase to 15.56,777 units in July, compared with 11,60,721 units in the same month last year.
“With all countries now open, July witnessed a strong recovery in automated retail because demand in all categories remained high.
In addition, low basic effects also continue to play their role,” Federation of the Association of the Car Dealer (Fada) President Vinkesh Gulati said in a statement .
Passenger vehicle sales increased 63 percent to 2,61,744 units last month, compared with 1,60,681 units in July 2020.
Gulati noted that the segment witnessed a strong demand with herbs around the new launch and compact SUV models.
However, the long wait for the supply side constraints continued to survive over the past few months and the cause of concern for the original equipment manufacturer (OEM), he added.
The two-wheel sales rose 28 percent to 11,32,611 units last month, such as 8,87,937 units in July 2020.
“The two-wheel segment continues to see the positive request of the year-to-year (yoy).
However, the level of recovery remains slow because of the customer At the bottom of the pyramid suffer with bad disposable income and rural markets where the Covid case is high during the second wave, “Gulattia said.
Commercial retail vehicles grew more than double in July to 52,130 units, from 19,602 units in the same month last year.
Gulati noted that the segment witnessed growth due to increasing demand, especially in the medium and heavy commercial vehicle segment (M & HCV) with the government to launch infrastructure projects in many parts of the country.
On the business prospects, he added that August has begun with a positive record because the level of demand and investigation continues to increase in all categories.
“By predicting a normal monsoon during the August-September period, sowing operations will increase gradually.
This will have a rubbing effect on rural sales, especially in the tractor segment,” Gulati said.
In the sale of the July tractor grew by 7 percent to 82,388 units, such as 77,257 units in July 2020.
Gulati stated that the problem of the lack of semiconductor is now a rooted problem for the passenger vehicle segment (PV) which is now above the pre-sign.
Fada has raised a red flag because there is quite a lot of time in inventory inventory requests, he added.
“In the internal survey conducted by Fada, a 60 percent dealer in the PV segment said that they had at least two months waiting period for certain variants.
Likewise, 35 percent of dealers also said that the waiting period was more than four months to choose.
Variant,” said Gulati.
In addition to lack of chip, the Delta Covid variant if it comes out of proportions can be another deterrent and put the brakes on automatic retail recovery with India entering the celebration season, he said.
Fada said it collected vehicle registration data from 1,305 of 1,519 regional transportation offices (RTO).
Founded in 1964, Fada, is the National APEX body of the car retail industry in the country.
This represents more than 15,000 car dealers that have 26,500 dealers throughout India.