Retail sales of cars and utility vehicles continued to improve in March, rising 10% from the preceding month, on the back of sustained improvement in economic activity and shift in customer preference towards personal mobility. A low base effect also aided the growth in passenger vehicles during the last month of FY21.
Showroom sales of passenger vehicles rose to 2,79,745 units during the month. Sales were also boosted by the long waiting period on popular products due to demand-supply mismatch.
Vehicle sales are usually compared on a corresponding basis, but in the second half of March last year, automakers had to close down their respective factories and showrooms, as the union government imposed a stringent lockdown.
Subsequently, operations remained suspended till first week of May, and in some cases early June.
