Passenger Vehicle sales drop by 10% in January

The Automobile Industry has been going through some tough times for the past two years amid the ongoing chip shortage. The automobile dealers body of the India Federation of Automobile Dealers Associations (FADA) has reported a decline of 10% in passenger vehicles in the month of January. however, some reports have surfaced that the ongoing shortage will be resolved to some extent by the end of this year. FADA President Vinkesh Gulati stated:"In spite of good demand, passenger vehicles continue to face the brunt of semiconductor shortage, resulting in the absence of a healthy inventory". The passenger vehicle (PV) sales dropped to 2,58,329 units last month, down 10.12 per cent from 2,87,424 units in January 2021.Two-wheeler sales also last month declined by 13.44 percent to 10,17,785 units, compared to 11,75,832 units in January 2021. Gulati said that rural distress coupled with price rise and omicron wave led to a drop in the sales in the segment.