FADA: vehicle registration across India decline 10.24% YoY in Sept

The Federation of Automobile Dealers Associations (FADA), apex national body representing automobile dealers in India, released vehicle registration data for the month of September 2020 during market hours today, 8 October 2020.

FADA said that total vehicle registrations in September 2020 declined 10.24% to 13,44,866 from 14,98,283 in September 2019.

Two-wheeler vehicle registrations were at 10,16,977 vehicles (down 12.62% YoY), three-wheeler vehicle registrations were at 24,060 vehicles (down 58.86% YoY) and the registrations of commercial vehicles stood at 39,600 vehicles (down 33.65% YoY) in September 2020.

However, passenger vehicle retail sales rose 9.81% year-on-year (YoY) to 1,95,665 units in September 2020 from 1,78,189 units in September 2019.

Tractor registrations, however, surged 80.39% to 68,564 units in September 2020 from 38,008 units in September 2019.

Vinkesh Gulati, FADA president, said, With the Government's persistent effort to unlock India, the month of September continued to witness Automobile Registrations on a rise as compared to previous months.

With social distancing on customer's mind coupled with government's push to further normalise business conditions and banks becoming more considerate to finance vehicles, entry level passenger vehicles saw good demand thus indicating a preference for personal transportation over public.

Tractor sales continued its dream run as Kharif sowing witnessed record progress of area covered till date when compared to last year.

While recently, the economic revival was mostly limited to Rural India and impact of Covid-19 was still felt on larger states and urban centres, the top states which makes up half of India's economic output (Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat and West Bengal) are now showing signs of revival as economic activities in these states are at its peak since lockdown began in March. This has also helped in creating a demand for automobile sales.

In its outlook, FADA said that the month of October & November brings with itself the much-awaited festival season of Navratri, Durga Puja & Diwali. With no more lockdown as announced by the Central Government, FADA anticipates a high growth period during these two months for automobile sales in India.

As a caveat, with festival season round the corner and elections approaching in Bihar, the risk of COVID-19 spread resurging may play a spoilsport in specific regions. Inventory for two-wheeler stands at 45-50 days and passenger vehicle stands at 35-40 days.

Any dampener in vehicle sales during the upcoming festivals will have a catastrophic impact on Dealers financial health, FADA said in a statement.

Meanwhile, the Nifty Auto index was down 0.38% at 8,139.10 while the benchmark Nifty 50 index rose 1.21% to 11,881.25.

Eicher Motors (down 1.92%), Ashok Leyland (down 0.78%), Escorts (down 0.57%), Tata Motors (down 0.50%) and Mahindra & Mahindra (down 0.30%) declined.

Hero MotoCorp (up 0.97%), TVS Motor Company (up 0.34%), Bajaj Auto (up 0.37%) and Maruti Suzuki India (up 0.06%) advanced.

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