Passenger automobile retail gross sales dip 11% in December amid semiconductor woes

Passenger automobile retail gross sales in India witnessed an 11 per cent year-on-year decline in December as semiconductor scarcity continued to influence the phase, car sellers’ physique FADA stated on Wednesday.
The passenger automobile (PV) retail gross sales final month fell 10.91 per cent to 2,44,639 models from 2,74,605 models in December 2020.
“The month of December is usually seen as a high sales month where OEMs continue to offer best discounts to clear the inventory due to change of the year. It was, however, not the case this time around as retail sales continued to disappoint, thus wrapping up an underperforming calendar year,” FADA President Vinkesh Gulati famous.
With semiconductor scarcity persevering with to play spoil-sport, passenger automobile gross sales regardless of large bookings in December closed in pink, he added.

Dealers, nonetheless, noticed slight ease in automobile provide, thus giving some hope of enchancment, Gulati said.
Two-wheeler gross sales additionally continued to stay within the sluggish lane final month, with gross sales of 11,48,732 models, down 19.86 per cent from 14,33,334 models in December 2020.
“High cost of ownership, bad rural sentiment, work from home and the latest threat of Omicron continued to impact sales,” Gulati famous.
Commercial automobile retail gross sales, nonetheless, rose 13.72 per cent final month to 58,847 models, as in opposition to 51,749 models in December 2020.
“The government’s push for infrastructure spending especially in road infrastructure, better freight rates, price hike announcement in January and a low base helped the overall segment close in positive double digits,” Gulati said.
Overall retail gross sales throughout segments final month stood at 15,58,756 models, down 16.05 per cent from 18,56,869 models in December 2020.
The Federation of Automobile Dealers Associations (FADA), which collated information from 1,379 out of 1,590 RTOs throughout the nation, stated it stays extraordinarily cautious over the subsequent 2-3 months with one more wave of COVID impacting the enterprise.
“Various state governments have once again announced COVID restrictions. Work and education from home have resumed and will have a negative effect on auto retail. With the fear of healthcare expenses rising again, the customers are shying away from closing their purchase decisions,” Gulati famous.
FADA represents over 15,000 car sellers having 26,500 dealerships throughout the nation.