fada reports increase in car sales in february even after semiconductor shortage

Federation of Automobile Dealers Association (FADA) has reported double-digit growth in passenger vehicle sales in February even though many automobile dealers suffered heavy losses owing to the non-availability of vehicles as a result of global semiconductor shortage.

The report further notes that the latest wave of surge in COVID-19 cases in some states of the country, along with the high fuel prices, has impacted the consumer sentiment to an extent, thereby having a negative impact on the two-wheeler segment. Not only this, but FADA has also said that the high fuel prices will continue to impact the sales of two-wheelers and commercial vehicles negatively.

As revealed by the data shared by FADA, the total retail sales of vehicles across all categories saw a decline of 13.43 per cent to 14.99 units. This drop comes mostly on the back of reduced demand for two-wheelers, three-wheelers, and commercial vehicles. While the sales of two-wheelers dropped down 16.08% to roughly 10.91 lakh units, three-wheelers sales dropped 50% to 33,319 units. Meanwhile, commercial vehicle sales go down 29.53% to 59,000 units. On the other hand, the demand for passenger vehicles, as well as tractors, saw healthy growth. The latter experienced an 18.89% increase in demand, thereby maintaining the upward trajectory. Moreover, FADA reports that tractor registrations will continue to grow in near future.

Sales of passenger vehicles (PVs) have posted a growth of 10.59% to more than 2.54 lakh units. However, it is required to mention here that this growth comes on the back of a weak base from February 2020 that was a result of the BSIV to BSVI transition. Speaking on this, FADA said, “.The global semiconductor outage kept the waiting period of PVs as high as eight months. FADA showed that 50% of PV dealers lost over 20% sales due to non-availability of vehicles.” The ‘sluggish demand’ for two-wheelers is largely owing to the recent wave of COVID-19 cars in some states of the country. “Enquiry levels also narrowed as many educational institutions were still reluctant to open. Fuel prices are at its historic high…pressing brakes on the sale of entry-level price-sensitive category,” it said.

Moreover, FADA has said that the commercial vehicle segment posted low sales figures due to financing issues, very low sales of passenger buses due to closure of educational institutes, and supply-side constraints.

FADA has said,

“Consumer spending, which is the driving force behind India’s economy and accounting for 60% of the GDP, fell 2.4% showing signs of sluggishness despite the quarter being in the festive season. This also reflects that consumers are still uncertain and worried about their income and cautious about spending.”

Finally, FADA has said that the automotive sector will witness a complete recovery based on the vaccination programme. That said, the increase in new COVID-19 cases can be detrimental to the pace of recovery and will have a negative impact on the demand for new vehicles. it has also once again urged the government to initiate talks with countries like Taiwan, which are manufacturers of semiconductors, to sustain the recovery pace of the industry. Speaking on the projection for March 2021, FADA said, “Overall, FADA continues to remain guarded in its optimism for vehicle registrations in March.”

Findings from our Online Members Survey


  • 51.9% dealers rated it as Good
  • 33.3% dealers rated it as Neutral
  • 14.8% dealers rated it as Bad


  • 49.6% dealers rated it as Good
  • 36.7% dealers rated it as Neutral
  • 13.7% dealers rated it as Bad

Expectation in March

  • 55.9% dealers rated it as Growth
  • 24.8% dealers rated it as Flat
  • 19.3% dealers rated it as De-growth


  • Average inventory for Passenger Vehicles ranges from 10 – 15 days
  • Average inventory for Two-Wheeler ranges from 30 – 35 days

All India Vehicle Registration Data for February 2021

2W 10,91,288  13,00,364 -16.08%
3W 33,319  66,177 -49.65%
PV 2,54,058  2,29,734 10.59%
TRACTOR 61,351  51,602 18.89%
CV 59,020  83,751 -29.53%
LCV 34,898  51,609 -32.38%
MCV 3,785  4,528 -16.41%
HCV 16,333  24,261 -32.68%
Others 4,004  3,353 19.42%
Total 14,99,036  17,31,628 -13.43%

OEM-wise Four-Wheeler Passenger Vehicle Registration Data for February 2021

Passenger Vehicle (PV)
Passenger Vehicle OEM FEB’21 Market Share (%), FEB’21 FEB’20 Market Share (%), FEB’20
MARUTI SUZUKI INDIA LTD 1,19,246 46.94% 1,14,848 49.99%
HYUNDAI MOTOR INDIA LTD 43,873 17.27% 35,337 15.38%
TATA MOTORS LTD 20,948 8.25% 12,978 5.65%
KIA MOTORS INDIA PVT LTD 14,828 5.84% 10,307 4.49%
MAHINDRA & MAHINDRA LIMITED 14,683 5.78% 18,226 7.93%
TOYOTA KIRLOSKAR MOTOR PVT LTD 10,055 3.96% 6,431 2.80%
HONDA CARS INDIA LTD 8,185 3.22% 6,485 2.82%
RENAULT INDIA PVT LTD 6,765 2.66% 8,626 3.75%
FORD INDIA PVT LTD 3,646 1.44% 3,662 1.59%
MG MOTOR INDIA PVT LTD 3,619 1.42% 2,505 1.09%
NISSAN MOTOR INDIA PVT LTD 2,447 0.96% 1,963 0.85%
MERCEDES-BENZ INDIA PVT LTD 627 0.25% 907 0.39%
BMW INDIA PVT LTD 626 0.25% 755 0.33%
VOLKSWAGEN AG/INDIA PVT. LTD. 140 0.06% 1,379 0.60%
VOLVO AUTO INDIA PVT LTD 88 0.03% 123 0.05%
AUDI AG 47 0.02% 314 0.14%
PORSCHE AG GERMANY 33 0.01% 40 0.02%
SKODA AUTO INDIA/AS PVT LTD 25 0.01% 1,341 0.58%
MERCEDES -BENZ AG 22 0.01% 4 0.00%
ROLLS ROYCE 1 0.00% 2 0.00%
Others 943 0.37% 1,865 0.81%
Total 2,54,058 100.00% 2,29,734 100.00%


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