Retail Sales of Passenger Vehicles rose 24% in December as a result of Pent-Up Demand, says FADA
Federation of Automobile Dealers Associations (FADA) auto dealership bodywork said Monday that retail sales of passenger vehicles (PV) in December saw an increase of 23.99 percent over one year to 2.71,249 units on the back of the ongoing pent-up demand of the holiday season.
As stated by the Federation of Automobile Dealers Associations, which gathered vehicle registration data from 1,270 of the 1,477 regional transportation offices (RTOs), Sales of PV vehicles came to 2.18.775 units in December 2019.
Meanwhile, the President of Federation of Automobile Dealers Associations, Vinkesh Gulati said that the car registrations increased for the first time in the current fiscal year in December. He also said a good crop season better offers in the two-wheeled segment, new launches both in passenger vehicles and in the two-wheeled segment. However, supply issues continued to affect the vertical of the passenger vehicle for the second consecutive month, resulting in a waiting period of up to 8 months for selected models.
However, sales of two-wheelers increased from 11.88 percent to 14.24,620 units last month, up from 12.73,318 units in December 2019 whereas the sales of commercial vehicles dropped 13.52% to 51,454 units in December 2020, compared to 59,497 units a year ago.
On the other hand, total sales of the various categories stood up by 11.01 percent to 18 44 143 units last month, up from 16 61 245 units.
Furthermore, growth can occur in a passenger vehicle segment if a mismatch between demand and supply is resolved. As well, the commercial vehicle segment continues to view demand pressure as axle load standards, rising fuel and vehicle costs, and higher freight rates continued to influence the vertical.
Lastly, the government’s endorsement of Rs.12, 000 crore infrastructure projects would help the utility vehicle segment, although a complete recovery is expected in all segments of the industry from April 2021 onwards.