: Vehicle sales in July grew by 34.12 per cent: FADA #finance #StockMarketNEWS Vehicle sales in July grew by 34. 12 per cent: FADA New Delhi, Aug 9 (KNN) Showing a positive trend in July, vehicle

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Vehicle sales in July grew by 34.12 per cent: FADA #finance #StockMarketNEWS
Vehicle sales in July grew by 34. 12 per cent: FADA New Delhi, Aug 9 (KNN) Showing a positive trend in July, vehicle sales grew by 34. 12 per cent in the month of July 2021 on a YoY basis, according to the latest data released by the Federation of Automobile Dealers Association (FADA).

Total vehicle retails for the month of July 21 rose by 34. 12 per cent on YoY basis. When compared to July’19 (a regular pre-covid month), recovery is visible as the deficit reduces to low double digits of -13. 22 per cent, FADA said on Monday.

On YoY basis, all categories were in green with 2W up by 28 per cent, 3W up by 83 per cent, PV up by 63 per cent, Tractor up by 7 per cent and CV up by 166 per cent.

After Tractors, PV for the first time showed strong numbers by clocking 24 per cent growth when compared to pre-covid month of July 19.

FADA has been raising red flags about semiconductor shortages for quite some time. The situation is now becoming grave with ever-increasing supply-side constraints.

The delta variant and a possibility of 3rd wave continues to remain a threat for stable Auto Retails, the statement added.

Commenting on how July’21 performed, FADA President, Vinkesh Gulati said, “With entire country now open, July continues to see robust recovery in Auto Retails as demand across all categories remains high. The low base effect also continues to play its part.

With all categories in green, CV’s continue to see an increase in demand especially in M&HCV segment with the Government rolling out infrastructure projects in many parts of the country, he added.

He also said that PV’s witnesses high demand especially with buzz around new launches and compact SUV segments adding, ‘‘The waiting period due to supply side constraints have been persisting since quite a few months and is now becoming a deep rooted issue for OEM’s.

The 2W segment though continues to see positive demand YoY, the rate of recovery remains sluggish as customers at the bottom of the pyramid suffer with poor disposable income and rural markets where covid cases were high during the 2nd wave, he said.

Auto Retails have now started narrowing the deficit when compared to pre-covid months. When compared to July’19, the gap reduces to low double digits of -13 per cent. With Tractor retails already above pre-covid levels during the last month, Passenger Vehicles for the first time have reached the same by growing 24 per cent,” he asserted.

The automobile dealers body said that the month of August begins on a positive note as demand and enquiry levels continue to improve across all categories. With IMD forecasting a normal monsoon during August- September period, sowing operations will pick up gradually.

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