NEW DELHI: Despite the year-on-year recovery, retail automobile sales in June 2021 are well below a normal pre-Covid month. According to vehicle registration data released by dealer association body FADA, total retail vehicle sales in June 2021 grew by 23% to 12,17,151 units as against 9,92,610 units sold during lockdown-infused June 2020.
However, sales in June 2021 was 28% lower than June 2019, the pre-Covid month, when the same stood at 16,98,005 units.
“The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent up demand which was stuck in the system because of statewide lockdowns,” said FADA President Vinkesh Gulati.
Gulati added passenger vehicles (PVs) saw good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families. Two-wheeler sales, though in green, has witnessed a softer recovery as the rural market is taking time to get back from post-Covid stress.
According to data, retail PV sales increased 45% YoY in June 2021 to 1,84,134 units while two-wheeler sales grew by 17% to 9,30,324 units. When compared with June 2019 data, PV sales and 2W sales fell 10% and 30%, respectively.
Commenting on the near term outlook, Fada sees positive momentum from June 2021 carry forward to July 2021. “With southern India opening up, we can expect further pickup in demand. On a longer term, auto industry is yet to see retail numbers comparable to FY19,” the association said.
However, global semi-conductor shortage will continue to impact demand-supply mismatch and may restrict the growth of PVs.