New Delhi, July 5 (KNN) The retail sales for the auto industry is up by 27 per cent in June as the semiconductor crises eases.

As per the data released by the Federation of Automobile Dealers Associations (FADA), all categories were in green. 2W, 3W, PV, Tractors and CV were up by 20 percent, 212 percent, 40 percent, 10 percent and 89 percent, respectively.

The overall growth in Q1 2022 increased by 64 percent when compared to Q1 2021 which saw intermittent lockdowns, but de-grew by 8 percent when compared to Q1 2019.

PV and tractor continued to show growth by rising 27 percent and 40 percent. For the first time, CV also increased by 4 percent. The two categories which continue to underperform were 2W and 3W which de-grew by 16 percent and 6 percent, respectively.

FADA President, Vinkesh Gulati said,” "Poor market sentiment especially in rural India, high cost of ownership, inflationary pressure and June generally being a lean month due to rains kept 2W sales at low speed. In the 3W category, a major shift has happened in electric category."

"Apart from this, permit issues and frequent price increase remained the biggest dampeners. The PV segment continued to see robust growth. An increase in wholesale clearly shows that semiconductor availability is now getting easier. Waiting period, especially in compact SUV and SUV segment continued to remain high. New vehicle launches are seeing robust booking thus reflecting healthy demand pipeline," he added.

Overall the enhanced growth signifies ease in semi-conductor availability thus reducing supply side constraints going ahead.  (KNN Bureau)