The Federation of Automobile Dealers Associations (FADA), apex national body representing automobile dealers in India, said that total vehicle registrations in January 2021 declined 9.66% to 15,92,636 units as against 17,63,011 units in January 2020

In January 2021, two-wheeler vehicle registrations were at 11,63,322 vehicles (down 8.78% YoY), three-wheeler vehicle registrations were at 31,059 vehicles (down 51.31% YoY), commercial vehicle registrations were at 55,835 vehicles (down 24.99% YoY) and the registrations of passenger vehicles stood at 2,81,666 vehicles (down 4.46% YoY) over the same month last year.

Tractor registrations, however, jumped 11.14% to 60,754 units in January 2021 from 54,662 units in January 2020.

Commenting on how January 2021 performed, FADA President, Vinkesh Gulati said, “After witnessing a one-off growth in December, January Auto Registrations fell once again by 10% YoY. Auto Industry clearly misjudged the demand which returned post lockdown. Industry's under estimation of post covid rebound along with chipmakers prioritizing higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors. This has resulted in shortage in supply for all categories of vehicles especially Passenger Vehicles even though enquiry levels and bookings remained high. New launches and SUV's continued to see high traction and helped in restricting the overall PV registrations fall by a bigger margin. The recent price hike undertaken by Auto OEMs also added to woos as Two-Wheeler have become more expensive for lower- and middle-income class. Commercial Vehicle registrations were also hit due to vehicle financing still not back to normal and high BS-6 cost.”