As is a known fact, the ongoing pandemic and the resultant lockdown, along with the increased focus on social distancing, has had a very bad effect on the sales of cars and motorcycles. In fact, every manufacturer recorded a sale of zero units back in April 2020, and even after the removal of complete lockdown, sales remained low as compared to the corresponding months of last year. In July 2020, however, the YoY car sale registered a de-growth of just 1%. This sales figure is recorded based on the dealer dispatch by the carmakers and not necessarily translates into an actual sale to the buyer.
The vehicle registration data released by FADA, however, paints a more accurate picture. As per the latest figures, the number of registration of vehicles in July 2020 stands 36 per cent lower to the total vehicles registered with the RTO in July 2019. Overall, as many 11.42 lakh vehicles were registered in July 2020 as compared to 17.92 lakh vehicles registered in July 2019.
This, there is a clear fall of 36.27 per cent in the number of registrations of vehicles on a YoY basis. It must be mentioned here that the registrations are down by a considerable margin even though the lockdown has been lifted almost completely in most areas of the country. Even with the relaxations, however, the registration data for July 2020 is only slightly better than that for June 2020. Speaking on the same, Ashish Harsharaj Kale, President, FAA, has said – “On a year-on-year basis, the auto sector recovery is yet to be seen anywhere near normal.”
As per the data, last month, there were 15,132 three-wheeler registrations made last month, which were a massive 74.33 per cent down from 58,940 units registered in the corresponding month of last year. This isn’t surprising if you consider the reluctance of everyone to use commercial vehicles. Hence, the complete commercial vehicle segment saw a massive drop of 77.18 per cent from 69, 338 registrations in July 2019 to just 19,293 registrations in July 2020. in the year-ago period.
Meanwhile, the two-wheeler registrations were down by 37.47 per cent from 13.98 lakh in July 2019 to 8.74 lakh last month. On the other hand, the passenger vehicle registrations were lower by 25.19 per cent from 2.1 lakh in July 2019 to 1.57 lakh last month. Interestingly, however, the tractor registrations grew by 37.24 per cent to 76,197 last month as compared to 55,522 in the corresponding month of last year. With this, overall vehicle registration stood at 11.42 lakh in July 2020, thereby registering a drop of 36.27 per cent from 17.92 lakh from July 2019.
Speaking on the trend, Kale added that the market scenario in current times do not indicate the actual demand situation of the entire country as many parts of the nation are still in high containment zones. Also, he said,”Banks and NBFCs though flush with high liquidity are still having a cautious approach towards funding auto retail, affecting the demand revival especially in segments of commercial vehicles, three-wheelers and two-wheelers.”