Auto sector on recovery path, retail sales up by 23 pc in June

New Delhi, Jul 8 (FN Bureau) Indian automobile sector was back on recovery path in June as retail sales rose by 23 per cent with commercial vehicle (CV) and passenger vehicle (PV) segments leading the way. According to data released by the Federation of Automobile Dealers Associations (FADA) on Thursday, compared to Jun 2020 every segment was in green with PV sales up by 43.45 per cent to 1,84,134 and CV sales up by 236.19 per cent to 35,700. Total vehicle sales was registered at 12,17,151 in Jun 2021, an increase of 22.62 per cent compared to that a year before.

Two-wheeler sales increased by 16.90 per cent to 9,30,324 and three wheeler sales by 21.98 per cent to 14,732. Tractor segment saw a grew by 14.27 per cent with 52,261 units sold in Jun 2021. Though there are signs of recovery, in comparison to per COVID-19 level retails sales in all segments, except tractors, was down. Total vehicle sales was down by 28.32 per cent in Jun 2021 against Jun 2019. PV sales was dropped 10.27 per cent, two wheelers 30.47 per cent, three wheelers sales dropped 69.82 per cent and CV was down by 45.11 per cent in comparison to Jun 2019 level.

“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 lock-downs. While all the categories were in green, Passenger Vehicles maintains to see good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families. Two-wheeler category though in green has witnessed a softer recovery as rural market is taking time to get back from post COVID stress,” said FADA President Vinkesh Gulati. FADA is positive about near term outlook. With southern India opening up, we can expect further pickup in demand, it said, adding that on a longer term, auto industry is yet to see retail numbers comparable to FY 19.