As per FADA, India's auto sales rose at a much slower pace of 14.5 per cent in August 2021 from 34.1 per cent in July 2021. Even PV and two-wheeler sales moderated by 38.7 per cent (63 per cent in July 2021) and 6.6 per cent (28 per cent in July 2021) respectively in August 2021. Auto retail sales declined over a 2-year horizon to 14.7 per cent in August 2021, signalling subdued demand. Further, the shortage of semi-conductors has added to supply-side challenges. This is likely to pose additional risk in the upcoming festive season.