The Federation of Automobile Dealers Associations (FADA) today released the vehicle registration data for the month of October 2020, during which the industry saw a cumulative drop of 23.99 per cent in new vehicle registrations. Last month the total new vehicle registrations stood at 14,13,549 units, as against 18,59,709 vehicles registered in October 2019. However, compared to September 2020, when 13,44,866 vehicles were registered, the auto industry saw a 5.11 per cent Month-on-Month (M-o-M) growth. According to FADA, one of the reasons for the decline is also the fact that Navratri was the only festival in October 2020, as compared to October 2019, when we had both Navratri and Diwali.
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Commenting on October 2020's performance, FADA President, Vinkesh Gulati said, "October continues to see positive momentum on monthly basis but on a yearly basis the negative slide continues to increase. The 9 days Navratri period witnessed robust vehicle registrations but could not save October to go in red as compared to last year when both Navratri and Diwali were in the same month."
With several new launches, the passenger vehicle segment continued to see demand, with total registrations standing at 2,49,860 units. However, FADA says that due to supply-side mismatch, most of the passenger vehicle dealers ended with a limited stock of high selling items and odd variants which did not attract much demand. Thus, compared to the 2,73,980 registered in October 2019, the industry saw a decline of almost 9 per cent. The entry-level motorcycles also witnessed a lean demand in the 2-Wheeler segment, which saw 10,41,682 registrations, almost 29 per cent decline compared to 14,23,394 2-wheelers registered in October 2019.
The three-wheeler segment took the biggest hit among all with total registrations standing at 22,381 vehicles, witnessing almost a 65 per cent decline last month, compared to 63,042 3-wheelers registered in October 2019. The commercial vehicle segment also witnessed a decline of over 30 per cent at 44,480 units, in October 2020, as against the 63,837 CVs registered during the same month last year.
At the same time, Tractor registrations saw a massive 55.53 per cent growth at 55,146 units last month, as compared to 35,456 units registered in October 2019. Stating the reason for the growth, Gulati said, "The Government's continued procurement of Kharif crops at MSP from farmers is leading to a higher disposable income in rural India. This continues to show robust demand in Tractor segment which grew at a healthy 55 per cent Y-o-Y."