Automobile registrations in India rose by 34 percent in July 2021 as compared to July 2020 with passenger vehicles showing hikes.
Auto Registrations Jump 34 Percent As Indian Economy Opens Up
NEW DELHI — Compared to July 2020, automobile registrations across India rose by 34 percent in July 2021, with vehicles for passengers showing a hike of 63 percent, the Federation of Automobile Dealers Association said on Aug. 9.
The Federation of Automobile Dealers Association is a national apex body representing automobile dealers of India.
Federation of Automobile Dealers Association of India represents over 15,000 automobile dealers having 25,000 dealerships, including 30 associations of automobile dealers at the regional, state, and city levels accounting for 90 percent of market share.
Vinkesh Gulati, president of the Federation of Automobile Dealers Association, felt that July 2021 saw a massive recovery in auto retails as demand across all categories remained high after states eased Covid-led lockdowns.
Data released by the Federation of Automobile Dealers Association showed three-wheeler registrations were up by 83 percent, with 27,904 registrations in July 2021 compared to 15,244 in July 2020.
Commercial vehicles witnessed an upswing of 166 percent to 52,130 registrations versus 19,602 in the same period.
Two-wheeler registrations totaled 11.32 lakh last month compared to 8.87 lakh in July 2020, marking an upturn of 27 percent.
Passenger vehicle registrations edged higher by 63 percent to 2.6 lakh from 1.6 lakh in the year-ago period.
However, tractor registrations rose by 6 percent to 82,388 last month compared to 77,257 in July 2020.
That took overall vehicle registrations to 15.56 lakh in July 2021, up 34.2 percent from 11.6 lakh in July 2020.
“Passenger vehicles are witnessing high demand, especially with the buzz around new launches and compact sport utility vehicle segments,” said Gulati.
“The waiting period due to supply-side constraints has been persisting and is now becoming a deep-rooted issue for original equipment manufacturers.”.
Gulati said the two-wheeler segment continues to see buoyant demand year on year, but the recovery rate remains sluggish.
“Customers at the bottom of the pyramid suffer from poor disposable incomes, and rural markets have seen high Covid-19 cases during the second wave,” he said.
“August has begun on a positive note as demand and inquiry levels continue to improve across all categories.”
Hero Motocorp Limited retained its first position in the two-wheeler segment with a 35.5 percent market share in July 2021. Maruti Suzuki India Limited dominated the passenger vehicle market, with a 43.7 percent market share in July 2021.
The association raised the alarm on the global semiconductor shortage, too.
“The global semi-conductor shortage is now becoming a deep routed problem for the passenger vehicle segment, which is now above the pre-pandemic mark. Federation of Automobile Dealers Association has been raising red-flag for quite some time on demand-supply mismatch,” it said.
Federation of Automobile Dealers Association was founded in 1964 by four regional Auto Trade associations to protect and promote the Indian retail automobile market. It is now a registered body under the Companies Act 1956.
(With inputs from ANI)
Edited by Saptak Datta and Ritaban Misra