New Delhi: Supply chain disruptions and low demand across segments, especially two-wheelers, are expected to impact automobile retail sales in the current fiscal with the turnaround anticipated only in the next financial year, automobile dealers' body FADA said on Tuesday.

According to the Federation of Automobile Dealers Associations (FADA), the ongoing Russia-Ukraine war and China lockdown is expected to hit supplies of critical components thereby impacting the revival of the domestic auto industry.

Besides, the revival of demand in rural parts of the county would also have an impact on the overall growth of the industry in the current fiscal. "We expect the situation to remain challenging in the current fiscal with sales volumes expected to grow by a single digit," FADA President Vinkesh Gulati told reporters here.

For the fiscal year ended 2021-22, the total auto industry retail sales grew by 7.21 percent to 1,63,75,799 units, as compared to 1,52,74,314 units in 2020-21 fiscal.

"The near-term outlook for the Indian auto industry continues to remain a challenge as the ongoing Russia-Ukraine war and China lockdown do not hint toward a smooth path. Crude is on a boil and hence fuel prices have been raised by around. Rs 10. This will continue to rise and further hit sentiments," Gulati noted.

The passenger vehicle segment is expected to witness an impact due to the disruption in precious metals and neon gas supplies which originate from the war-hit zone, he added.

It will further slow the supply of semiconductors thus making waiting periods long er for the PVs, Gulati said.

"Overall, FADA remains extremely cautious in terms of any recovery in sight until the Russia-Ukraine war and China lockdown comes to an end," he noted.

FADA anticipates the auto industry to come out of the woods and reach pre-pandemic highs by FY2024, Gulati said.-PTI