Semiconductor Shortage: Passenger Vehicle Retail Sales Drop 10 Percent In January: FADA

New Delhi: With the shortage of semiconductor, the vehicle manufacturing companies are finding it difficult to meet the demand of the consumers and due to this the passenger vehicle retail sales have witnessed a decline of 10 percent year-on-year in January 2022.

As per the data on vehicle sale released by the Federation of Automobile Dealers Associations (FADA), clearly shows that the Passenger Vehicle (PV) dropped to 2,58,329 units last month down 10.12 percent from 2,87,424 units in January 2021.

''In spite of good demand, Passenger Vehicle continues to face the brunt of semi-conductor shortage resulting in void of a healthy inventory. Coming to 2-Wheeler category, the rural distress coupled with price rise and omicron wave played a villain's role for this segment,'' said FADA President, Vinkesh Gulati.

The two wheelers sale too witnessed a decline of 13.44 percent Year-on-Year as in January this year a total number 10,17,785 units were sold as compare to 11,75,832 in January 2021.

''Auto retails weak performance of -18.4% compared to January'20 (a pre-covid month) continues to show that India is yet to recover from the covid effect which gripped the world 2 years ago,'' Gulati added.

Tractor sales stood at 55,421 units last month, down 9.86 per cent from 61,485 units in January 2021.

However, commercial Vehicle witnessed a growth of 20.52 percent as In January 2022 around 67,763 units were sold while in last year January 2021 a total of 56,227 units were sold.

Three-wheeler retail sales also grew by 29.8 per cent to 40,449 units in January 2022 as compared to 31,162 units a year ago.

The total sales across categories last month declined by 10.69 per cent to 14,39,747 units from 16,12,130 units in January 2021.

''Auto retails weak performance of -18.4% compared to January'20 (a pre-covid month) continues to show that India is yet to recover from the covid effect which gripped the world 2 years ago,'' Gulati noted.

He further said that as India gets back on its feet post the 3rd wave of Covid, we expect that Auto Retail will slowly turn positive.

''Semi-conductor shortage is also showing some signs of easing as many PV OEMs assure of better dispatch. We hence expect vehicle availability to improve going further,'' he added.

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