Vehicle registration for the month of May saw a massive drop of 88.87 per cent in India. According to the report shared by the Federation of Automobile Dealers Associations (FADA), total vehicles registered in May 2020 amounted to 2,02,697 units, as against the 18,21,650 vehicles retailed during the same month last year. The automotive dealers' association says that this is a direct result of the coronavirus pandemic, and the resultant nationwide lockdown, which is still in place in many parts of the country.
Commenting on how the industry performed in May 2020, FADA President, Ashish Harsharaj Kale said, "For the first time in history, the month of April witnessed zero retails. While lockdown was gradually relaxed beginning May, auto dealerships and workshops opened for the first time after 40 days in many cities. At the end of May, out of 26,500 outlets about 60 per cent showrooms and 80 per cent workshops were operational across the country. May registrations are hence not indicative of the demand situation as the lockdown still continued in many parts."
Last month, the total number of passenger vehicles registered in India stood at 30,749 units, a drop of almost 87 per cent, as compared to the 2,35,933 vehicles retailed in May 2019. Similarly, two-wheeler registrations stood at 1,59,039 units, witnessing a decline of around 89 per cent, as against the 14,19,842 two-wheelers registered during the same month in 2019. At the same time, commercial vehicle registrations declined by 96.63 per cent to 2,711 units, while three-wheeler registrations dropped 96.34 per cent to 1,881 units. Tractor sales brought some amount of positivity to the otherwise gloomy month, with total registration standing at 8,317 units, as against 34,053 units registered in May 2019, witnessing a much acceptable 75.58 per cent de-growth.
Sharing the outlook for the month of June, Kale said, "With an assumption of no further lockdown and continued reopening measures, there will be substantial pick up in auto retails in comparison to May, but the overall outlook continues to be grim with projected sales to witness a de-growth upwards of 25 per cent YoY. urban demand will continue to face challenges ahead with Covid-19 uncertainty. On the flip side, the government's push for infrastructure spending and the recent positive measures announced for the agriculture sector will help support rural demand. It will further strengthen with the normal spread of monsoon which will help Tier 2 and 3 dealers face lesser de-growth compared to their urban colleagues."