The industry is also facing a shortage of semiconductors, steel and shipping containers leading to shortage in production and exports.
Sale of two, four-wheelers steadily increases post lockdown; from 1,226 vehicles in April,2020 to 76,519 in Oct-Nov
Going ahead, however, the shortage of semi-conductors is likely to impact supply chains and, subsequently, the production capacity of automakers.
The retail sales of two-wheelers lag behind the wholesale sales numbers but would even out over a period, as original equipment manufacturers engage with their dealers.
Tata Motors on Tuesday said its total vehicles sales (domestic and international) grew 21 per cent in November to 49,650 units.
The ratings agency said, however, that the overall auto industry would continue to grow in the next few months, in line with improving economic indicators.
At October-end this year, average inventory for PVs at dealership level stood at 35-40 days as compared with 25-30 days in the same period last year.
Motorcycle sales were at 13,82,749 units as against 11,16,886 units in October 2019, up 23.8 per cent.
Two-wheeler sales declined 26.82 per cent to 10,41,682 units last month, as compared to 14,23,394 units in October 2019.
The shifting trends have brought with it a surge in omni-channel aftermarket models as well as 'new normal' aftermarket solutions, it added.
In the new normal, many new customers are choosing personal mobility, especially two-wheelers over public transport, Guleria said.
Two-wheeler sales also rose 11.64 per cent to 18,49,546 units, compared with 16,56,658 units in the same month last year.
Two-wheeler sales grew by 3 per cent last month to 1,559,665 units as against 1,514,196 units in the year ago month.
Total sales across categories declined 26.81 per cent to 11,88,087 units last month as against 16,23,218 units in the year-ago month.
Tractor volumes are expected to grow at a stellar pace of 45 per cent year-on-year (YoY) on a low base and continued retail momentum.