Retail sales in August have received a boost due to increased inquiries and healthy demand noted the Federation of Automobile Dealers Association (FADA)
A normal monsoon forecast for Aug-Sept could boost sowing operations, which could increase sales in rural areas, specifically, the sale of tractors.
The waiting period has increased by two to four months for passenger vehicles owing to the shortage of semiconductors, dealers said.
A spike in delta variant of COVID-19 could slow down the auto-sector recovery in India, as the country prepares for the festive season, said FADA.
July retail sales
Sales across segments remained high in July due to a low base and a revival of the auto sector in the country, the association added.
The commercial vehicle segment witnessed a demand, especially in the medium and heavy commercial vehicle segment as the government rolls out infrastructure projects in various parts of the country.
The passenger vehicle and two-wheeler segments witnessed an improvement but the rate of recovery for two-wheelers remained sluggish due to reduced income and a slump in demand due to the second wave of COVID-19.
| Retail Sales (FADA data) | July 2021 | July 2020 | Growth (YoY) |
| Two-wheeler | 1,132,611 | 887937 | 28% |
| Three-wheeler | 27,904 | 15244 | 83% |
| PV | 261,744 | 1,60,681 | 63% |
| Tractor | 82,388 | 77,257 | 7% |
| Total | 1,556,777 | 1,160,721 | 34% |