Passenger Vehicles take auto sales on a ride to pre-Covid levels

NEW DELHI: Led by demand for passenger vehicles (PV), auto sales in India are inching towards pre-Covid levels. According to data released by dealer association body Fada on Monday, retail auto sales in July 2021 grew by 34% year-on-year to 15,56,777 units on a low base and pent-up demand.  

When compared with the pre-Covid month of July 2019, retail auto sales in July 2021 were down by 13%. While in July 2021, each segment witnessed Y-o-Y growth in sales, it was only the PVs and the tractors that managed to clock growth when compared with July 2019 sales. Retail PV sales in July 2021 grew by 63% Y-o-Y to 2,61,744 units and 24% over 2019 sales. The high volume two-wheeler segment also witnessed 28% growth in Y-o-Y sales in July 2021 to 11,32,611 units, but when compared with June 2019, it fell by over 19%. 

“Auto Retails have now started narrowing the deficit when compared to pre-Covid months. When compared to July’19, the gap reduces to low double digits of -13%,” said FADA President Vinkesh Gulati.
He added, “The 2W segment though continues to see positive demand YoY, the rate of recovery remains sluggish as customers at the bottom of the pyramid suffer with poor disposable income” 

On the near-term outlook, Fada expects demand to remain robust in August 2021 but is wary of semi-conductor shortage issue. “The month of August begins on a positive note as demand and enquiry levels continue to improve across all categories. With IMD forecasting a normal monsoon during August- September period, sowing operations will pick up gradually. This will have a rub off effect on rural sales especially in tractor segment,” said Fada.