Domestic Passenger Vehicle Retail Sales declined 8% in February

According to FADA, domestic passenger car retail sales fell 8% in February due to continued production suspensions due to chip shortages.

The passenger vehicle sales came down to 2,38,096 units in February. The industry experts have warned that the Russia-Ukraine conflict can also impact the production of semiconductors as well. 

FADA President Vinkesh Gulati has said that even though the passenger vehicle segment saw some launches and sight respite in supply due to better production, it was not enough to meet customer demand. The waiting period still remains the same as past few months.

The Federation of Automobile Dealers Associations has also said that the war can lead to a semiconductor shortage once again that can result in additional supply-side issues.

Russia is among the largest producer of rare-earth metals, like Palladium and Ukraine is one of the biggest producers and exporters of neon gas, which is also used in the manufacturing of semiconductors.