FADA President Winkesh Gulati said that the global shortage of wafers, which is an input for semiconductor, has kept the PV waiting period high by seven months
According to data from the Federation of Automobile Dealers Associations (FAA), retail passenger vehicle sales in the country increased by 28.39% in March 2021 to lower sales compared to the previous year. .
However, despite the lower base, total vehicle sales in the segment fell by 28.64% to around 16.49 lakh units, a 35.26% decline in two-wheeler sales to around 11.95 lakh units, a nearly 51% decline in three-wheeler sales. Came to 38,034 units. And a 42% decline in sales of commercial vehicles to 67,372 units. Meanwhile, tractor sales rose 69,082 units last month, up 29.21%.
The industry body said it is maintaining “extreme caution” for April amid a second wave of COVID-19 epidemics, potential lockdowns and shortages of semiconductors and ABS (anti-lock braking systems).
FADA President Vinkesh Gulati said, “Tractors and passenger vehicles [PV] There were only two categories, which saw healthy double digit growth. This increase may be linked to several factors such as last year’s low base, with the transition from BS-IV to BS-VI and overall decline in India. “
He said that the global shortage of wafers, which is an input for semiconductors, kept the PV waiting period high for seven months.
Mr. Gulati said the financial crisis brought on by COVID-19 left nearly 32 million Indians out of the middle class, according to Pew Research, which has hit the two-wheeler segment badly, which in the past few years Saw one of the strongest developments. Month. “It works as a double damper in tandem with high fuel prices and price increases. This not only caused havoc in the entry level customers but also kept them away from going to the showroom.
The Auto Dealers body stated that April is generally a high selling period due to festivals such as Ugadi, Gudi Padwa, Baisakhi and Poila Boishakh with the wedding season.
It added that any lockdown at this point would disrupt the momentum that is building for the auto industry. “The growth of COVID-19 and fear among consumers… has started keeping them away from making high ticket purchases. With the lack of semiconductor this combination not only P.V.
The FADA said that since Maharashtra contributes 10–11% to auto retail, the current lockdown will have a “disastrous effect” on total sales for the month of April. “Overall, FADA maintains extreme caution for the month of April as COVID rises to new highs,” it said.
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