Auto sales may be lacklustre this festival season: FADA

As per the data released by the association, retail sales of passenger vehicles grew close to 39% last month to 2.53 lakh units, while two-wheeler sales increased 7% to 9.76 lakh.

Even as total vehicle retail sales grew by 14.5% to more than 13.48 lakh units in August, the Federation of Automobile Dealers Associations (FADA) has warned of a ‘lacklustre festive season’ with passenger vehicles witnessing demand-supply mismatch and two-wheelers facing a demand crunch. As per the data released by the association, retail sales of passenger vehicles (PV) grew close to 39% last month to 2.53 lakh units, while two-wheeler sales increased 7% to 9.76 lakh. Commercial vehicle sales almost doubled to 53,150 units from 26,851 from a year earlier. Sales of three-wheelers and tractors rose 80% to 30,410 units and 5.5% to 71,737, respectively. “With OEMs drastically cutting down production due to unavailability of semiconductors and ABS chips... shortage of containers and high metal prices, customers for the first time may not get a vehicle of their choice and [with] lucrative schemes during this festive season,” FADA said in a statement