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The vehicle retail sales across all categories in July 2021 rose 34.12% to 15.56 lakh units, from 11.60 lakh units in the year-ago period, according to data released by Federation of Automobile Dealers Associations (FADA).
Commercial vehicle segment grew at the fastest rate of 165.94% in July compared to other categories with medium commercial vehicles and heavy commercial vehicles dominating the space.
Three-wheeler vehicle segment grew at a rate of 83% in July, the second fastest segment, compared to the corresponding period last year.
Demand for passenger vehicles growth rate of 63% in July was boosted by new launches. However, supply side constraints and global semi-conductor shortage is having a negative impact on the segment.
The two-wheeler category continued to see good numbers, but the growth rate was capped as disposable incomes fell and the second-wave of the pandemic affected rural markets. Tractor retail sales were above pre-covid levels at 82,388 units in July 2021, compared with 55,543 units in July 2019. On a year-on-year basis tractor sales rose 6.6%.
In the near term, FADA has a positive outlook on the auto sector as the sales numbers looked good in the first week of August, helped by improving demand and enquiries. It also expects the tractor segment to perform well in the months of August and September as agriculture activities pick up on the back of IMD forecasting a normal monsoon.