Auto sales have picked up in June, and the momentum is likely to continue in July, says the Federation of Automobile Dealers Associations (Fada) in their latest report.
Demand in the next few months would depend on the economy, but the market will likely be on track towards recovery owing to the festive season, hopes Fada.
With many states easing COVID-19 restrictions, sales will most likely increase, noted the association, adding that pre-pandemic-level, nonetheless, would remain unlikely.
The global semiconductor shortage continues to impact the production and demand of passenger vehicles and restrict sales. But the market remains optimistic owing to the expectation of a normal monsoon and a ramp-up of vaccination drive. However, new mutants of the virus and the potential third wave are hurting consumer sentiments.
|Auto sales in June|
|Source: Fada release|
In June, all categories posted a jump in sales compared to the prior year. Passenger vehicle sales continued to grow as people are observing social distancing. The two-wheeler sector reported a softer recovery as the second wave hit rural markets. The commercial vehicle segment has been the laggard in the auto sector but posted substantial year-on-year growth in June.