The Federation of Automobile Dealers Associations (FADA) has published January 2021 new vehicle registration data, which shows a nearly 9.7% decline in total registrations. All segments except Tractor were in red last month. The 2W, 3W, CV and PV segments fell by 8.78%, 51.31%, 25% and 4.46%, respectively. The tractor continued its upbeat momentum with a YoY growth of 11.14%.
After witnessing a one-off growth in December, January auto registrations fell once again by ~10% YoY. Auto Industry clearly misjudged the demand which returned post lockdown. Industry’s underestimation of post-Covid rebound along with chipmakers prioritizing higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors. This has resulted in short supply for all categories of vehicles especially Passenger Vehicles even though enquiry levels and bookings remained high. New launches and SUVs continued to see high traction and helped in restricting the overall PV registrations fall by a bigger margin. – Vinkesh Gulati, FADA President
Mr. Gulati added that “the recent price hike by OEMs also added to woos as two-wheelers have become more expensive for lower and middle-class people. CV registrations were also hit due to vehicle financing still not back to normal and high BS6 costs”.