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India’s vehicle sales up by 22% in June 2021

05 August 20225 mins read by Angel One
India’s vehicle sales up by 22% in June 2021
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The Federation of Automobile Dealers Associations’ (FADA) June 2021 report mentions a YoY increase in total vehicle sales by 22.6%. However, this figure is short by 28% compared to the vehicle sales of June 2019.

Auto retail sales hike – a closer look

While automobile dealerships across the country are still not fully operational due to state-wise lockdowns, this is still an impressive number. Some of the big wins are:

Vehicle category % Increase in number of registration
Two-wheelers 17%
Three-wheelers 22%
Cars and SUVs 43%
Tractors 14%
Trucks and buses 236%

This growth is expected to continue in July as well. FADA’s president added that passenger cars saw this rise in demand due the Covid-19 restrictions that affected the availability of public transport.

However, if we compare this growth to that of 2019, then:

  • Three-wheelers segment is down by 45%
  • Commercial vehicles segment has lowered by 70%

FADA reports predict that this shortfall will be covered in the coming months. Since state-wise lockdowns are easing in different parts of the country, demand is likely to increase, as dealers are commencing their operations.

Besides relaxing the lockdown norms, GOI has introduced other initiatives to encourage growth of this sector.

Wondering what? Read on

Government initiatives in the automobile sector

To begin with, the introduction of 100% FDI via the automatic route is one of the major steps. Along with that, here are some notable initiatives by the Indian Government for the automobile sector:

  • The voluntary vehicle scrappage policy, which will boost demand for vehicles. This policy will remove old and unfit vehicles currently running on roads.
  • Bringing auto retail under MSME. This move benefits auto dealers by lowering financing costs and utility rates.
  • Approval of FAME-II scheme, which brought a funding of Rs. 10000 crores to the automobile sector in FY2020-22.
  • The Union Cabinet has a Production-Linked Incentive system in place for automobile and its associated sectors of Rs. 57,000 crores.


India’s automobile industry is backed by several interesting factors that work together to improve its functioning. This industry also provides great investment opportunities. Moreover, with such a robust structure, this industry is all set to reach Rs. 16.16 – 18.18 trillion by 2026.

Therefore, the road ahead for India’s automobile sector is filled with opportunities and lucrative investment scope.

Frequently asked questions

Which vehicle category has witnessed a vehicle registration hike this year?

Only the tractor segment in India has witnessed an increase in vehicle registration this year than that of the previous one.

What is the increase in showroom sales of passenger vehicles?

Passenger vehicle sales increased to 184134 units in June from 85733 units in May.

What is the percentage of increase in commercial vehicle registration?

The commercial vehicle segment witnessed a 103% rise in registrations.

Which is the leading car manufacturer per sales volume in June 2021?

Maruti is the leading vehicle manufacturer per sales volume in June 2021.

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