After the Covid outbreak and the resultant lockdown put brakes on vehicle registrations in 2020, dealers in Chandigarh had a chance to rejoice as the numbers showed a slight improvement in 2021.
As per the data provided by the registration and licensing authority (RLA) and state transport authority (STA), there was a 24.96% increase in vehicle registrations in 2021, as compared to the year before. With an overwhelming majority of people opting for dealer-pointer registrations, these are seen as a marker of vehicle sales in the city.
Though the registration numbers in 2021 were lower than pre-Covid times, city-based dealers say the problem is not with demand but with a shortage in supply. They added that vehicle sales are likely to reach pre-Covid levels by mid-2022.
As per officials, there was an increase in the sales of cars as well as two-wheelers in 2021.
The sales of electric vehicles also doubled from 370 in 2020 to 733 in 2021.
Vice-president of the Federation of Chandigarh Regional Automobile Dealers, Ranjeev Dahuja said, “The rise could have been even higher, but the dealers are facing a shortage of stock. The demand of cars is almost 40% more than the supply.”
{{/usCountry}}Vice-president of the Federation of Chandigarh Regional Automobile Dealers, Ranjeev Dahuja said, “The rise could have been even higher, but the dealers are facing a shortage of stock. The demand of cars is almost 40% more than the supply.”
{{/usCountry}}Dahuja, who also owns a Tata dealership in the city, said that even a one-to-three month waiting period doesn’t deter people, most of whom still prefer premium SUVs over other cars.
Prices may rise this year
Nitin Mehan, the owner of Autopace Chandigarh and general secretary of the federation, added, “While there is a semiconductor shortage which has affected the supply, it is certain to get fixed by the second half of 2022. However, the price of some components used in making cars is going up in the global markets and a price hike of 4-5% can be expected within January itself.”
While the sale of electric vehicles has increased, Dahuja, said it will still be a few years before the concept properly catches on in the city and charging infrastructure will be needed for that.
The sale of two-wheelers remained less than cars, however, senior vice-president of Platinum Honda for the tricity Sushil Dutta said there is likely to be a rise in 2022.
“There was around a 7% growth in our sales this year but we expect a further increase in 2022. As more offices stop with work from home, people will need vehicles. Because of Covid, there is also a push towards owning a vehicle, so we expect sales to rise further in the coming days,” said Dutta.