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Report has is that vehicle registration witnessed a drop of 88.87 percent during the month of May this year. A report shared by the Federation of Automobile Dealers Associations says that total vehicles registered in May 2020 amounted to 2,02,697 units, as against the 18,21,650 vehicles retailed during the same month last year.
The Association said that the drop in registration was a result of the Covid-19 outbreak in the country, and the subsequent lock down that was implemented.
Mr Ashish Harsharaj Kale, the President at the Federation of Automobile Dealers Association said, "For the first time in history, the month of April witnessed zero retails. While lockdown was gradually relaxed beginning May, auto dealerships and workshops opened for the first time after 40 days in many cities."
"At the end of May, out of 26,500 outlets about 60 per cent showrooms and 80 per cent workshops were operational across the country. May registrations are hence not indicative of the demand situation as the lockdown still continued in many parts," he added.
May this year saw a total of 30,749 passenger vehicles registered, as compared to the 2,35,933 vehicles that were registered during the same period last year - translating to a drop of almost 88 percent.
Two-wheeler registrations for the month of May 2020 stood at 1,59,039 units, as compared to the 14,19,842 units registered during May 2019 - resulting in a drop of almost 89 percent.
Commercial and three-wheeler vehicle registrations stood at 2,711 units and 1,881 units respectively, translating to a decline of 96.63 percent and 96.34 percent.
Tractor sales have seen slightly better results with total registration number at 8,317 units for May 2020 as compared to the 34,053 units registered during May 2019 - translating to a drop of 75.58 percent.
The Association is hopeful that the Industry will witness a spike in sales with all the strict reopening mandates in place. However they also feel that overall growth looks unpromising and expect the Industry to witness a de-growth of over 25 percent year-on-year.
The Federation is hoping that the Government's recent initiatives of spending on better infrastructure and spending on the agricultural sector will help increase demand for vehicles in rural areas.
The FADA also feels that demand will increase once monsoon starts and this will help Tier 2 and Tier 3 vehicle dealers register better sales and registration numbers.
Thoughts About Vehicle Registration Numbers For The Month Of May 2020
A drop in sales and resulting vehicular registration was expected the moment a lockdown was called for across the country. The Covid-19 situation has changed spending patterns and one can expect the Auto Industry to recover over a longer period of time. We expect dealers to post lower sales and registration numbers from before the ciris.