Vehicle Registrations Tumble 30% In FY21 Says FADA

According to a latest monthly update from the Federation of Automobile Dealers Association (FADA) of India, for FY 20-21, total vehicle registrations were down by 30% (below FY12-13 levels). Except Tractors which grew by 16%, all other categories were in red with 2W, 3W, CV and PV falling by 32%, 64%, 49% and 14% respectively and way below FY13 levels (lowest in last 8 years). Total vehicle registration for the month of April'21 plummeted by 28% MoM. All categories declined with 2W, 3W, PV, Tractors and CV falling by 28%, 43%, 25%, 45% and 24% respectively. FADA noted that the 2nd wave of covid has not only created havoc in urban but has also unsettled rural India this time around as demand trend in 1st 9 days of May shows extremely weak consumer sentiment with almost 95% India under lockdown (full as well as partial) except Telangana. FADA appealed to all Auto OEMs to handhold their Dealers the way they did during last wave of covid in 2020 and not burden them with high inventory. FADA also requested the Central Government to announce a financial package in terms of moratorium and RBI to release guidelines for relaxation of loan re-payment equivalent to number of days of lockdown each state has declared.

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