Lockdowns drag down vehicle registration to 9-month low in April: FADA

Development derails the recovery that had begun in June 2020

Amid localised lockdowns imposed by several state governments, all-India vehicle registrations declined to a nine-month low in April, according to the monthly registration data released by the Federation of Automobile Dealers Associations (FADA) on Monday.

About 1.18 million vehicles, across categories, were registered last month — the lowest since July 2020, when close to 1.14 million units were registered. The registrations in April were down 32 per cent compared to the corresponding month in 2019. The numbers are not comparable with last April’s as it was a zero sales month on account of the national lockdown. 

Unable to bear the pain inflicted by shuttered outlets, which is costing the dealerships dearly, the apex national body representing automobile dealers is seeking relief from the government. 

It has also called upon automobile manufacturers to extend help, much the same way they did during the outbreak of the pandemic last year. “India is currently facing one of its toughest times with the second wave of Covid creating havoc in everyone’s life. This time, the spread is not limited to urban markets, but has also taken rural India in its grasp,” said Vinkesh Gulati, president, FADA, in the statement.

Unlike last year, lockdowns this time around have been imposed by state governments. Due to this, there has been no relief announcement till now from the Centre, the Reserve Bank of India or auto OEMs (Original Equipment Manufacturers), said Gulati.

After the 21-day national lockdown that took effect on March 24, 2020, vehicle registrations had started picking up pace month-on-month (M-o-M) since June 2020, peaking in December. However, the second wave, which started in March, undid the recovery.

The registrations in the first month of the fiscal fell by 28 per cent month-on-month as many Indian states started going under lockdown (partial or full), beginning April 5 onwards. The spread started with Maharashtra, followed by Chhattisgarh, Delhi, Rajasthan and other states. Not surprisingly, all categories closed the month in the red, with two-wheelers down by  28 per cent, three-wheelers by 43 per cent, passenger vehicles by 25 per cent, tractors by 45 per cent, and commercial vehicles by 24 per cent on a M-o-M basis.

The dealer body has appealed to automakers “to handhold” their dealers the way they did last year, saying the situation is very grim in most states, and dealer principals as well as their teams are fighting for their survival from Covid. 

It has also requested manufacturers to not burden dealers with “high billings in states where lockdown has been announced.”