Vehicle Registrations Tumble 42% In June Says FADA

The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of June 2020. June 2020. Vehicle Registration for June tumbled by 42% as the Indian economy continues to battle with Covid-19. On a YoY basis, 2-Wheeler registrations de-grew by 40.92%, 3-Wheeler by 75.43%, Commercial vehicles by 83.83%, and Passenger vehicles by -38.34%. Tractors registrations continue to march ahead with June numbers showing a growth of 10.86%.

FADA President, Ashish Harsharaj Kale stated that 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% automobile dealership outlets (showroom and workshops) were operational across the country, barring a few cities and towns which have once again implemented stringent Lockdown. June registrations, although better than May are still not indicative of the actual demand situation as Lockdown woes continue in some parts and supply side is far from its complete potential.

FADA noted that overall weak economic sentiments coupled with 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.

Overall Auto demand continues to be a challenge coupled with supply side constraints as well Constraints in Retail Lending from NBFC's, 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% - 35% across various segments in FY21, except for the Tractor segment, which looks set to clock a positive annual growth.

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