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June auto sales likely to improve over May; experts see better days ahead

Experts see the numbers improving in the coming months amid the pick-up in vaccination drive, hopes of a normal monsoon and rural recovery.

June 30, 2021 / 11:54 AM IST

Automobile companies may report better sales numbers for June 2021 than the previous month on the back of easing lockdown restrictions in states amid a steady decline in new coronavirus cases. On a year-on-year (YoY) basis, numbers expected to be mixed, say experts.

Overall, the auto sales numbers are not strictly comparable on a YoY or month-on-month (MoM) basis due to the unprecedented situation amid the pandemic. The monthly auto sales data will be released by companies from July 1.

According to experts, numbers may remain muted as some dealer shops are only open for limited hours as fear of a third wave still persists. Experts expect sales to normalise Q2 FY22 onwards given the pent-up demand, improving macros and ease in restrictions.

"The easing of restrictions has helped recovery of retail sales up to 65-70 percent of the normal levels. Our interactions with original equipment manufacturer (OEMs) and dealers suggest strong demand from rural areas, though there has been a sales loss on account of the marriage season forgone in May and June of 2021," said Sharekhan.