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.
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:
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
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:
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.
Only the tractor segment in India has witnessed an increase in vehicle registration this year than that of the previous one.
Passenger vehicle sales increased to 184134 units in June from 85733 units in May.
The commercial vehicle segment witnessed a 103% rise in registrations.
Maruti is the leading vehicle manufacturer per sales volume in June 2021.
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