Retail Sales Of Passenger Vehicles Up 40% In June As Chip Shortage Eases
Overall retail auto sales increased 27% year-on-year to 15,50,855 units in June 2022, as against 12,19,657 units in the year-ago period.
Retail sales of passenger vehicles rose 40% year-on-year in June 2022, indicating an easing of chip shortage, even as demand remained robust.
According to the Federation of Automobile Dealers Associations of India, passenger vehicle registrations rose to 2,60,683 units last month versus 1,85,998 units in June 2021--an increase of 40%.
"The PV segment continued to see robust growth. Increase in dispatches clearly shows that semiconductor availability is now getting easier," FADA President Vinkesh Gulati said in a statement on Tuesday.
Due to chip shortage, however, waiting periods -- especially in compact SUV and SUV segments -- continue to remain high, he said. Despite that, new vehicle launches are witnessing robust bookings, reflecting healthy demand pipeline, Gulati said.
Two-wheeler retail sales rose 20% to 11,19,096 units in June 2022, as compared to 9,30,825 units in the year-ago period, FADA data showed.
Poor market sentiment, especially in rural India, high cost of ownership, inflationary pressures and June generally being a lean month due to rains kept the growth in two-wheeler sales at low speed, Gulati said.
Retail sales of commercial vehicles witnessed an 89% year-on-year increase to 67,696 units. Three-wheeler registrations surged to 46,040 units, as against 14,735 units in June last year. Tractor sales increased by 10% to 57,340 units last month.
Overall retail sales increased by 27% year-on-year to 15,50,855 units in June, as against 12,19,657 units in the year-ago period. But compared to June 2019, overall sales are still down by 9%, Gulati said.
On business outlook, he said that with inflationary pressures continue to weigh on household budgets. High fuel prices have had a spillover effect on transportation and made it expensive. This will have a negative effect on entry-level passenger vehicles as well as two-wheelers, which attract first-time buyers.
"On the other hand, an easing chip shortage will see increase in supply, especially in the PV segment, and thus reduce waiting period. If rural India stabilises, auto retail will enter the festive season on a good note," Gulati said.
