The Federation of Automobile Dealers Associations (FADA) has published March 2021 new vehicle registration data, which shows nearly 28.4% YoY growth in the Passenger Vehicles segment. The Tractor segment, in particular, continued double-digit growth. The overall registrations (including 2W, 3W, Tractor and CV), however, saw a decline of nearly 29% last month.
Tractors and Passenger Vehicles were the only 2 categories that saw healthy double-digit growth. This growth can be associated with multiple factors like low base of last year, transition from BS4 to BS6 and India going under total lockdown. The global shortage of wafers which is an input for semiconductor, continued to linger around and kept the PV waiting period as high as 7 months. According to FADA Survey, 47% of PV dealers said that they lost more than 20% sales due to supply side constraints.
Tractors continued its dream run as rural incomes saw improvements after successive monsoons and good rabi produce. If experts are to be believed, India will witness a normal monsoon for the 3rd year in a row. This will further see tractors performing well in FY 21-22. – Vinkesh Gulati, FADA President
OEM-wise market share data for March 2021 with YoY comparison: