New Delhi, Jul 8 (KNN) As various states eased COVID-19 related restrictions, India vehicle sales grew 23 per cent to 1.21 million units in June as compared to May, said automobile dealers' body FADA said on Thursday.

However, when compared to June 2019, a regular pre-COVID month, the automobile retail sales are still down by 28.32 per cent

According to data provided by the Federation of Automobile Dealers Association (FADA), passenger vehicle sales during June jumped 43 per cent to 184,134 units compared to the same month last year.

Similarly, commercial vehicle sales increased to 35,700 units as against 17,534 in May, while three-wheeler sales surged to 14,732 units in June from 5,215 units in May.

Tractor sales too witnessed an increase in registrations at 52,261 units as compared to 16,616 units.

Total registrations across categories increased to 12,17,151 units as against 5,35,855 units in May.

Commenting on how June’21 performed, FADA President, Vinkesh Gulati said, “The month of June witnessed re-opening for most of the states except the ones in South. Due to this, the industry witnessed a high pent-up demand which was stuck in the system because of state-wide lockdowns.

He further said that the Passenger Vehicles maintained good demand as customers continued to show keenness in vehicles for observing social distancing and safety of their families. The Two-Wheeler category though in green has witnessed a softer recovery as the rural market is taking time to get back from post covid stress.

''Commercial vehicle segment has seen a staggering growth over last year, though on a very low base as there were product shortages due to BS-6 transition,'' he added.

Gulati also pointed out that the industry is still not out of the woods. When compared to June’19, we are still in red by -28 per cent with 3W and CVs taking the max hit as they are down by -70 per cent and -45 per cent respectively. Only Tractors continue to grow as it was up 27 per cent compared to June’19.

Positive momentum from June carries forwards to July. With southern India opening up, we can expect further pickup in demand. On a longer term, Auto Industry is yet to see retail numbers comparable to FY 19, he said.

He also said that continued global semiconductor shortage is impacting demand – supply mis-match thus restricting the growth of Passenger Vehicles.

''On one hand, while the new virus mutants and a prediction of 3rd wave in August are affecting sentiments, the revival of monsoons in July after a pause of 2 weeks and a better vaccination drive rate continues to build some hope,'' he said.