Passenger vehicle sales grew over 40 per cent year-on-year (YoY) to 260,683 units in June compared with 185,998 units in the corresponding month last year.

However, high inflationary pressure across sectors will have a negative effect on entry-level passenger vehicles (PV) and two-wheeler segments in the coming months, the Federation of Automobile Dealers Association (FADA) said on Tuesday.

“The PV segment continued to see robust growth. An increase in dispatches clearly shows that semiconductor availability is now getting easier,” FADA president Vinkesh Gulati said.

Due to chip shortage, however, waiting periods, especially in compact SUV and SUV segments, continue to remain high, he added. Despite long waiting periods, new vehicle launches are witnessing robust bookings thus reflecting a healthy demand pipeline.

He said “overall Q1’22 grew 64 per cent when compared with Q1’21, which saw intermittent lockdowns, but contracted 8 per cent when compared with Q1’19. Only PV and tractors were in the green.”