Passenger vehicle retail sales in India up 40% in June as semiconductor supply improves

Sales of passenger cars in India increased by 40% in June as semiconductor supply improved

According to the Federation of Automobile Dealers Associations, passenger car registrations increased to 2,60,683 units last month, compared to 1,85,998 units in June 2021.

Sales of passenger cars in the country increased by 40 percent in June, indicating an improvement in semiconductor products as demand, especially for SUVs, remained strong, FADA said on Tuesday.

According to the Federation of Automobile Dealers Associations (FADA), registration of passenger vehicles (PV) increased to 2,60,683 last month, compared to 1,85,998 units in June 2021, an increase of 40%.

“The PV segment has continued to grow steadily. The increase in transmission clearly indicates that semiconductor acquisition is now easier,” FADA President Vinkesh Gulati said in a statement.

Waiting times are still high

However, due to chip shortages, waiting times, especially in the combined parts of the SUV and SUV, continue to remain high, he added. Despite the long wait, the launch of the new cars proves a solid reservation that shows the required healthy pipeline, said Mr. Gulati.

Two-wheeled sales last month increased by 20% to 11,19,096 units, compared to 9,30,825 units over the past year, FADA data showed.

Mr. Gulati noted that the unfavorable market conditions especially in rural India, high ownership costs, inflationary pressures and June are often like a weak month due to the rain keeping sales of two tires at a low level.

Overall growth

Sales of motor vehicles also increased by 89% year-on-year last month by 67,696 units. Three-wheeler registrations increased last month to 46,040, compared to 14,735 units in June last year.

In addition, tractor sales also increased by 10% to 57,340 units last month, compared to 52,289 units in June 2021.

Overall retail sales increased by 27% to 15,50,855 units in June, compared to 12,19,657 units in the past.

Mr. Gulati, however, noted that compared to June 2019, the month before COVID, total sales last month had dropped by 9%.

Strong budget

Regarding the business vision, he said as prices for almost all essentials had risen to the north, it had put pressure on the average person’s home budget. In addition, high fuel prices have had a negative impact on transportation and made it more expensive, said Mr. Gulati.

This will have a negative impact on the entry level of PV and the two-wheeled segment often dominated by people who are just starting to buy, he added.

“On the other hand, the easy availability of semiconductors will see an increase in supply especially in the PV segment and thus reduce the waiting period. When rural India recovers, car sales will enter the holiday season on a positive note,” Mr Gulati said.


I am Sanjit Gupta. I have completed my BMS then MMS both in marketing. I even did a diploma in computer software and Digital Marketing.

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