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The Federation of Automobile Dealers Association has announced that registrations for passenger vehicles have witnessed a year-on-year decrease of 38 percent. A total of 1,26,417 vehicles were registered in June 2020.
Total registration numbers at Regional Transport Offices across the country dropped by 42 percent as compared to registrations witnessed during June last year. The Dealers Association says that the Covid-19 pandemic is the primary reason for the drop in registrations.
The Federation said that while sales and registration numbers for the month of June were better than numbers registered in May, it is too early to speculate if demand has increased as supply chains are far from potential in some parts of the country.
Mr Ashish Harsharaj Kale, the President at FADA said, "Unlock 1.0 coupled with increase in demand from the rural market has boosted the retail sales with respect to the May month's numbers."
"At the end of June, almost 100 percent dealership outlets (showroom and workshops) were operational across the country, barring a few cities and towns which have once again implemented stringent lockdown," he added.
The commercial vehicle segment has witnessed the highest decline in sales and registrations with 10,509 vehicles registered this June as compared to the 64,976 units registered during the same period last year, translating to an 84 percent decline.
Registrations for two-wheelers stand at 7,90,118 units for June this year, as compared to the 13,37,462 units registered during the same period last year, translating to a 41 percent decline.
Registrations for three-wheelers for the month of June 2020 stand at 11,993, as compared to the registrations witnessed over the same period last year that stood at 48,804, translating to a decline of 76 percent.
Registrations for tractors showed positive growth and stand at 45,358 for the month of June 2020, as compared to the 40,913 units registered during June 2019, translating to a growth of almost 11 percent.
Mr Kale said, "Overall weak economic sentiments coupled with a rising number of Covid-19 patients has led to weak consumer confidence especially in Tier-1 cities, as customers stopover from concluding their purchase as fear of community spread and therefore a return of complete lockdown persists."
"Normalcy in demand still seems quite distant and not before the festive season. Despite the positive trends in the rural markets, the annual outlook currently continues to be grim with projected sales to witness a de-growth range of 15 to 35 percent across various segments in FY21, except for the tractor segment, which looks set to clock a positive annual growth," he added.
In related news, the Society of Indian Automobile Manufacturers said they witnessed a 53 percent decline in domestic sales of vehicles during the month of June.
A total of 10,94,363 units were sold during the month of June this year, as compared to the 22,53,407 units that were sold during the same period last year. The numbers include passenger vehicles, three-wheelers, two-wheelers and quadricycles.
Thoughts About Registrations Of Passenger Vehicles Declining By 38 Percent
This isn't good news for the Auto Industry and other economies that are dependent on it. We hope that the economy and the Industry recover soon, before all hell breaks loose.