Passenger vehicles' retail sales surge 24% in December on sustained demand
1 min read . Updated: 11 Jan 2021, 01:48 PM IST
Premium- Due to higher discounts offered and improved demand for executive segment products, retail sales of motorcycles and scooters jumped 11.9% to 14,24,620 units in December
NEW DELHI: Driven by better-than-expected demand after the end of the festival season amid rising preference for personal mobility, retail sales of passenger vehicles rose 23.9% year-on-year to 2,71,249 units in December, as per data released by Federation of Automobile Dealers Associations (FADA) on Monday.
Sales during the corresponding month in 2018 stood at 2,18,775 units.
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The growth, though, comes on a low base as most automakers had slashed production last year due to tepid demand amid transition to vehicles complying with Bharat Stage-VI emission norms.
Sequentially, however, sales fell from 2,91,001 units sold in November, when automakers had increased dispatches before Diwali.
Due to higher discounts offered and improved demand for executive segment products, retail sales of motorcycles and scooters jumped 11.9% to 14,24,620 units in December. Sales also improved on a sequential basis from 14,13,778 units sold in November and 10,41,682 units in October.
As a result of the slowdown in economic activity due to the pandemic, retail sales of commercial vehicles declined 13.5% to just 51,454 units.
According to Vinkesh Gulati, president, FADA, for the first time this fiscal, registration of automobiles recorded a growth on a year-on-year basis in December but supply side issues led to increased waiting period.
While December saw demand continuing from the festival season and front-loading of purchases due to imminent price hikes, January may turn out to be bleak. Passenger vehicle segment may witness growth if demand supply mismatch is resolved. Given the price hikes announced, FADA expects a temporary blip in demand.
