Automobile retail sales drop in December, passenger vehicles slip 11%

The overall sales of auto sales in the country saw a decrease of 16 percent in December. Sales of two-wheelers, passenger vehicles and tractors fell by 20 per cent, 11 per cent and 10 per cent respectively, in December 2021 year-on-year, according to the Federation of Automobile Dealers Associations (FADA) data released on Wednesday.

According to FADA data, passenger vehicle sales fell 10.91 per cent to 2,44,639 units in December. Whereas in December 2020, a total of 2,74,605 ​​units of vehicles were sold.

Passenger Vehicle sales continue to face the brunt of semi-conductor shortage with a consistent long waiting period. Two-wheeler sales show no sign of recovery as customers continue to remain cautious with the rising third wave of COVID-19 pandemic and bad rural sentiments.

Medium and Heavy Commercial Vehicle segments continue healthy growth with a low base of last year and bring Commercial Vehicle sales at almost pre-COVID levels. India once again starts facing the heat of Delta/Omicron wave with many states now starting to put movement restrictions which will further impact sales.

Three-Wheeler and Commercial Vehicles sales rose by 59 per cent and 14 per cent respectively, during the month under review.

"The month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of year. It was however not the case this time around as retail sales continued to disappoint thus wrapping up an underperforming calendar year," FADA President Vinkesh Gulati said in a statement.