Beating all bumps, car sales grow 27% in '21

Despite Covid & Shortages, Cos Sell 30L+ Units

- Pankaj Doval

New Delhi: Led by SUVs and new models, the passenger vehicles industry staged a spirited comeback in 2021, despite challenges of semiconductor shortage and a second wave of coronavirus, as sales grew 27% and crossed the psychological 30-lakh-unit mark for only the third time in history.

Despite severe production constraints and a long delivery backlog (estimated at 7 lakh units), car companies sent 30.82 lakh units to dealerships in calendar year 2021, against 24.33 lakh units in 2020. The rate of growth was strong due to a low base as 2020 was the first year to have been impacted by the virus outbreak amidst a period of tremendous uncertainty.

Passenger vehicles sales crossed the 30-lakh mark for the first time in 2017 where total sales stood at 32.3 lakh units. In 2018, the industry had closed at 33.95 lakh units, before slipping down in 2019 to 29.62 lakh units.