Shortage of semiconductors, price hikes pull January auto sales into red

Dec had seen sales grow for 1st time this FY, which dealers called a one-off

Retail sales of automobiles dropped by around 10 per cent in January to 1,592,636 units (two-wheeler, three-wheeler, passenger vehicles or PVs, commercial vehicles or CVs, and tractors) from 1,763,011 units a year ago. This came just a month after retail sales grew for the first time this financial year in December, which dealers said was a one-off.

The reasons for the drop in January, dealers said, were shortage of semiconductors, price hikes, fading demand, among others.

Retail sales of PVs fell by around 4.5 per cent year-on-year (YoY) to 281,666 units in January, from 294,817 units a year ago. Two-wheeler sales declined