Vehicle registrations in June increase 23% on last year’s low base

Vehicle registrations across all the categories rose 22.62 per cent in June on last years’ low base, Federation of Automobile Dealers Association (FADA) said on Thursday. However, as compared to June 2019, total registrations dropped 29 per cent.

“The month saw re-opening for most of the states except the ones in the South. Due to this, the industry

witnessed a high pent up demand which was stuck in the system because of statewide lockdowns,” Vinkesh Gulati, president, FADA said in a statement.

The apex body for auto retailers expects the positive momentum from June to continue. It said that the global semiconductor shortage is weighing on demand. The supply mismatch due to a dearth of chips is restricting the growth of passenger vehicles. On one hand, while the new virus mutants and a prediction of a third wave in August are affecting sentiment, the revival of monsoons in July after a pause of two weeks and a better vaccination drive rate continues to build some hope.

The industry will have to wait and watch how the overall economy shapes up over the next couple of months. FADA expects demand to be a mixed bag and hopes the recovery to be back on track by the time the festive season kicks in.

Among all the categories, the demand for passenger vehicles, fuelled by strong preference for personal mobility, has been the most robust. Two wheelers, though in green, have witnessed a softer recovery as the rural market takes time to get back from Covid stress. The 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-VI transition.

When compared to June 2019, the industry is still not out of the woods. When compared to the period the industry is still in the red by -28 per cent with three wheelers and commercial vehicles taking the biggest hit. The two segments are down by 70 per cent and 45 per cent, respectively. Only tractors continue to grow they were up 27 per cent compared to June 2019.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor