New Delhi: Retail sales of passenger vehicles in India saw a decline of 11 per cent year-on-year in December as semiconductor shortages continued to impact the segment. automobile dealer‘ body FADA said on Wednesday. Passenger vehicle (PV) retail sales last month fell 10.91 per cent to 2,44,639 units from 2,74,605 units in December 2020.
“The month of December is generally viewed as a high sales month, where OEMs continue to offer the best discounts to clear inventory due to the change of year. However, this was not the case this time because retail sales continues to disappoint, thus wrapping up an underperforming calendar year,” said FADA President Vinkesh Gulati.
The poor game continued with semiconductor shortages, with passenger vehicle sales closing in the red despite heavy bookings in December, he said.
Gulati said that however, dealers saw a slight easing in vehicle supply, giving some hope for improvement.
Two-wheeler sales also slowed down last month, with sales of 11,48,732 units down 19.86 per cent from 14,33,334 units in December 2020.
“High cost of ownership, poor rural sentiment, working from home and the latest threat from Omicron continued to impact sales,” Gulati said.
However, commercial vehicle retail sales increased by 13.72 per cent to 58,847 units last month as against 51,749 units in December 2020.
Gulati said, “Government’s pressure, especially for road infrastructure, better freight rates, announcement of price hike in January and infrastructure spending on a lower basis, helped the overall segment close in positive double digits.” ”
Last month, retail sales across segments stood at 15,58,756 units, down 16.05 per cent from 18,56,869 units in December 2020.
The Federation of Automobile Dealers Associations (FADA), which collected data from 1,379 out of 1,590 RTOs across the country, said it remains extremely cautious in the next 2-3 months, yet another wave of Covid hits the business .
Gulati said, “Various state governments have once again announced Covid restrictions. Work from home and education have resumed and auto retail will be negatively impacted. Fearing health care expenses will rise again, customers We are shying away from closing our buying decisions,” Gulati said. noted.
FADA represents over 15,000 automobile dealers with 26,500 dealerships across the country.
“The month of December is generally viewed as a high sales month, where OEMs continue to offer the best discounts to clear inventory due to the change of year. However, this was not the case this time because retail sales continues to disappoint, thus wrapping up an underperforming calendar year,” said FADA President Vinkesh Gulati.
The poor game continued with semiconductor shortages, with passenger vehicle sales closing in the red despite heavy bookings in December, he said.
Gulati said that however, dealers saw a slight easing in vehicle supply, giving some hope for improvement.
Two-wheeler sales also slowed down last month, with sales of 11,48,732 units down 19.86 per cent from 14,33,334 units in December 2020.
“High cost of ownership, poor rural sentiment, working from home and the latest threat from Omicron continued to impact sales,” Gulati said.
However, commercial vehicle retail sales increased by 13.72 per cent to 58,847 units last month as against 51,749 units in December 2020.
Gulati said, “Government’s pressure, especially for road infrastructure, better freight rates, announcement of price hike in January and infrastructure spending on a lower basis, helped the overall segment close in positive double digits.” ”
Last month, retail sales across segments stood at 15,58,756 units, down 16.05 per cent from 18,56,869 units in December 2020.
The Federation of Automobile Dealers Associations (FADA), which collected data from 1,379 out of 1,590 RTOs across the country, said it remains extremely cautious in the next 2-3 months, yet another wave of Covid hits the business .
Gulati said, “Various state governments have once again announced Covid restrictions. Work from home and education have resumed and auto retail will be negatively impacted. Fearing health care expenses will rise again, customers We are shying away from closing our buying decisions,” Gulati said. noted.
FADA represents over 15,000 automobile dealers with 26,500 dealerships across the country.
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