‘Retail auto sales stayed stuck in the slow lane in November’
Heavy rains, chip shortage led to a 3% decline, says FADA
Automobile retail sales in the country declined by about 3% in November as chip shortages and heavy rains in South India impacted sales across various segments including passenger vehicles and two-wheelers, automobile dealers’ body FADA said on Wednesday.
Total registrations slid 2.7% last month to 18,17,600 units, from 18,68,068 units in November 2020. Passenger vehicle sales, however, slumped a much sharper 19.4% to 2,40,234 units, from 2,98,213 units in the same period last year.
Similarly, two-wheeler sales last month dropped to 14,33,855 units, from 14,44,762 units in the year-earlier period. Tractor sales slid to 45,629 units last month from 50,180 units in November 2020.
Commercial vehicle and three-wheeler registrations, however, increased last month as compared with the year-earlier period.
“Auto retail for the month of November continued to remain in the negative zone despite Diwali as well as marriage season in the same month,” FADA president Vinkesh Gulati said in a statement.
The passenger vehicle segment continues to face the brunt of a shortage of semiconductors, he said.
“While the new launches are keeping customer’s interest high, it is only the lack of supply which is not allowing sales to conclude,” Mr. Gulati said. “The extended waiting period is now starting to make customers jittery, and this may lead to loss of interest in vehicle buying,” he added.