The industry apex body Federation of Automobile Dealers Associations (FADA) released vehicle registration data for the month of August 2020 during market hours today, 8 September 2020.
Total vehicle registration fell 26.81% to 11.88 lakh units in August 2020 as against 16.23 lakh units in August 2019. Sequentially, total vehicle registration rose 3.97% in August 2020 compared with 11.42 lakh units in July 2019.
Commercial vehicle (CV) registration tanked 57.39% on Y-o-Y basis. Passenger vehicle registration declined 7.12% to 1.78 lakh units on year-on-year (YoY) basis. Two-wheeler registration stood at 8.98 lakh units in August 2020 as against 12.60 lakh units in August 2019, registering a decline of 28.71%. Three-wheeler registration witnessed a 69.51% drop to 16,857 units in August 2020 as against 55,293 units in August 2019.
However, tractor sales jumped 27.80% to 67,406 units in August 2020 over 52,744 units in August 2019.
FADA, in its press release stated that: "September brings with itself, the inauspicious 16 days Shraadh period. This coupled with 30 days of Adhik Maas (an extra month in the Hindu calendar that is inserted to keep the lunar and solar calendars aligned) is considered inauspicious in North, East and West India when no high value transactions take place."
"The moratorium period from banks has ended on 31st Aug. During this period, if NPA's are not too high and recovery rate is even neutral to positive, Banks and NBFC's may return with aggressive financing schemes for Auto Loans thus leading to a strong demand pullback."
"While OEM's are dispatching vehicles to Dealers with a purpose of stocking-up inventory for the upcoming festival season, retail sales are still at 70-75% levels despite the low base of last year. FADA advises extreme caution to all OEMs and our Dealer fraternity to avoid excessive Inventory build-up thus leading to unmanageable interest cost which could further result in dealership closures."
Meanwhile, the Nifty Auto index shed 0.27% to 7,866.40. The index has fallen 2.28% in four sessions.
Ashok Leyland (down 2.89%), Tata Motors (down 2.88%), Maruti Suzuki India (down 0.6%) and Bajaj Auto (down 0.19%) declined.
Mahindra & Mahindra (up 0.17%), TVS Motor (up 0.51%), Eicher Motors (up 0.59%), Hero MotoCorp (up 1.11%) and Escorts (up 5.74%) advanced.
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