Passenger automobile retail gross sales dip 4% in Jan on semiconductor scarcity: Industry physique FADA

Automobile sellers’ physique FADA on Tuesday stated passenger automobile (PV) retail gross sales in January witnessed a year-on-year decline of 4.46 per cent to 2,81,666 models, as semiconductor scarcity impacted the section.
According to the Federation of Automobile Dealers Associations (FADA), which collected automobile registration knowledge from 1,273 out of the 1,480 regional transport places of work (RTOs), PV gross sales stood at 2,94,817 models in January 2020.
Two-wheeler gross sales declined 8.78 per cent to 11,63,322 models final month, as in comparison with 12,75,308 models in January 2020.

Commercial automobile gross sales additionally slipped 24.99 per cent to 55,835 models, as towards 74,439 models a yr in the past.
Similarly, three-wheeler gross sales fell 51.31 per cent to 31,059 models final month, from 63,785 models within the year-ago interval.
Tractor gross sales, nevertheless, grew by 11.14 per cent to 60,754 models final month, towards 54,662 models in the identical month the earlier yr.
Total gross sales throughout classes declined 9.66 per cent to fifteen,92,636 models final month in comparison with 17,63,011 models within the year-ago interval.
Commenting on the gross sales knowledge, FADA President Vinkesh Gulati stated after witnessing a one-off development in December, January registrations fell as soon as once more by 10 per cent year-on-year.
“Auto industry clearly misjudged the demand which returned post lockdown. Industry’s underestimation of postcovid rebound along with chipmakers prioritising higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors,” he famous.
This has resulted in a scarcity in provide for all classes of autos, particularly passenger autos, though enquiry ranges and bookings remained excessive, Gulati stated.
Semiconductors are silicon chips that cater to regulate and reminiscence features in merchandise starting from vehicles, computer systems and cellphones to numerous different digital gadgets.
The utilization of semiconductors within the auto business has gone up globally in latest occasions, with new fashions coming with increasingly digital options equivalent to Bluetooth connectivity and driver-assist, navigation and hybrid-electric programs.
Gulati stated the latest worth hike is undertaken by firms and added to woes as two-wheelers have turn out to be costlier for decrease and middle-income lessons. Similarly, business automobile registrations have been additionally hit as a consequence of automobile financing nonetheless not again to common and excessive BS-VI value, Gulati stated.

“With a high base and continued shortage of semiconductors on the one hand and the gradual opening of academic institutes and business as usual along with COVID vaccine’s effectiveness on the other, FADA continues to remain guarded in its optimism for auto registrations during the fourth quarter of this financial year,” he added.