Retail sales of PVs rise 42% in July
NEW DELHI: Retail sales of vehicles rose sharply in July on a sequential basis largely because of pent-up demand and greater preference for personal mobility to avoid infection and as dealerships reopened in most states.
Retail sales had plunged in April and May because of an explosive increase in Covid cases that led to the closure of dealerships and factories.
Showroom sales of passenger vehicles (PVs) rose 42.14% to 261,744 units in July from 184,134 units in June, showed data issued by the Federation of Automobile Dealers Associations (Fada) on Monday.
With a steady drop in infections, especially in north and south India, most firms had resumed operations from midMay. Vehicle sales are usually compared with those of the corresponding periods. However, during March and May 2020, automakers had to shut plants and showrooms due to a strict nationwide lockdown. Operations remained suspended till the first week of May and, in some cases, till early June.
Vinkesh Gulati, president, Fada, said most states except for some in the south eased Covidrelated curbs from June, which led to an increase in vehicle sales in July.
“While all categories (of automobile sales) were in the green, PVs maintained good demand as customers continued to show interest in vehicles for observing social distancing and for the safety of their families. The twowheeler category, though in green, has witnessed a softer recovery as the rural market is taking time to recover from postCovid stress,” he said.
Meanwhile, resumption of manufacturing and construction activity spurred a 46% jump in new commercial vehicle registrations at 52,130 units, though on a very low base. Decline in covid cases in rural markets and easing of curbs led to a 21.7% sequential rise in the retail sales of two-wheelers at 1.13 million units. Retail sales are showing signs of recovery, but PV makers may find it tough to sustain the momentum because of disruption in production caused by a global shortage of semiconductor chips. Price rise by companies to offset higher commodity prices may also impact demand.