The registration of vehicles across India decreased by 42 per cent in June when compared to last year due to COVID-19, said the Federation of Automobile Dealers Association (FADA). General
While the numbers of registrations in June are better than in May, it is still not suggestive of the demand situation across India and in addition to the woes, the supply is also not at its best, FADA added.
Commenting on the retail sales of June, FADA President Ashish Harshraj Kale said, the weak economic sentiment with an increase in COVID-19 patients has affected the confidence of the consumers in bigger cities.
While the three-wheelers and commercial vehicle registrations saw a humongous plunge by 75.43 per cent and 83.83 per cent respectively in comparison to last year, the tractor registration surprisingly saw a growth of 10.86 per cent due to the Rabi crop procurement and arrival of monsoons.
The private vehicle and two-wheeler registrations also took a slight hit but remained the least affected due to unavailability of public vehicles and an increased sense of health and hygiene among people.
With the assumption that the lockdown would not be prolonged, FADA expects vehicle registrations to recover in the upcoming months.
With the projected sales to decrease around 15-35 per cent across various vehicle registrations, except for the tractor registration, the annual outlook continues to look grim, said FADA.
“Hopes are there with further green shoots of demand in newer geographies and segments. While challenges like supply constraints, retail lending from NBFCs and thus normalcy in demand seems distant and not before the festive season,” said Kale.