Improvement in retail sales of vehicles

Retail sales of vehicles in the domestic market witnessed an improvement in June and sales grew by nearly 23 per cent compared to a year ago. The biggest increase was seen in the sales of commercial and passenger vehicles.

According to the data released today by Federation of Automobile Dealers Associations (FADA), sales of passenger vehicles increased by 43.45 per cent to 1,84,134 units and that of commercial vehicles by 236.19 per cent to 35,700 units in June. The total sales of vehicles stood at 12,17,151 units which is an increase of 22.62 percent as compared to June 2020. Two-wheeler sales increased 16.90 percent to 9,30,324 units and three-wheeler sales rose 21.98 percent to 14,732 units. Tractor sales stood at 52,261 units in June 2021 with a growth of 14.27 per cent.

Although vehicle sales have increased compared to a year ago, it is yet to reach the pre-COVID level. The overall retail sales of vehicles in June 2021 were down by 28.32 per cent as compared to June 2019. Passenger vehicle sales declined by 10.27 percent, two-wheeler 30.47 percent, three-wheeler sales by 69.82 percent and commercial vehicles by 45.11 percent as compared to two years ago.

FADA President Vinkesh Gulati said that in June, all states except the southern states relaxed restrictions, which increased sales due to stagnant demand in the market. People showed interest in buying passenger vehicles for the sake of social distancing and safety of their families. Two-wheeler sales have also increased, but its pace has been slow. The reason for this is that the rural economy is taking longer to recover from the pressure of COVID-19. FADA is positive about the near future. He said that in the states of South India also, the demand is expected to increase further with the relaxation of restrictions. In the long run, it will take time for the auto industry to reach the level of FY 2018-19.