Retail sales of auto gained 14 per cent to 1.38 million units, led by a surge in passenger vehicle sales and commercial vehicles, data from the Federation of Automobile Dealer Association (FADA) said. The increase in sales has increased even after the hike in vehicle prices across segments linked with a constant rise in the price of petrol and diesel. New models and cheaper auto loans have increased in demand.

Passenger vehicles (PV), including cars, SUVs and vans, grew 39 per cent during August to 253,363 units. Segment players saw a decrease in the supply of semiconductors resulting in unscheduled closure of manufacturing plants.
Vinkesh Gulati, FADA President, said, “In 2021, supply is becoming an even bigger problem due to the shortage of semiconductors, even though there is a huge demand for PV. Every dealer starts planning for a bigger offtake, but due to supply issues, inventory levels are at lowest levels during this financial year.”

Two-wheeler retails sales grew by 7 per cent to 976,051 in August compared to last year. FADA said that following multiple price hikes, increased fuel cost and with educational institutions and offices remaining closed, the two-wheeler segment did not achieve demand logged by the PV section.