Retail sales of passenger vehicles fell 4.5 per cent year-on-year to 281,666 units in January 2021 from 294,817 units, in January 2020, after two consecutive months of growth. Key reasons attributed behind the drop include high base effect and shortage of semiconductors.
According to the Federation of Automobile Dealers Associations (FADA) passenger vehicles sales stood at 294,817 units in January 2020.
Two-wheeler sales declined 8.78 per cent to 1,163,322 units last month, from 1,275,308 units in January 2020. Commercial vehicle sales slipped 24.99 per cent to 55,835 units, from 74,439 units a year ago.
Three-wheeler sales fell 51.31 per cent to 31,059 units last month, from 63,785 units in the year-ago period.
FADA President Vinkesh Gulati said that after witnessing a one off growth in December, January Auto Registrations fell once again by about 10 per cent YoY.
“Auto Industry clearly misjudged the demand which returned post lockdown. Industry’s under estimation of post-covid rebound along with chipmakers prioritizing higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors. This has resulted in shortage in supply for all categories of vehicles especially Passenger