In June 2020, a total of 9.84 lakh vehicles were registered across the country. The same month last year, this figure stood at 16.97 lakh, resulting in a 42% (YoY) decline.
As the Indian economy is slowly emerging from the severe COVID-19 lockdown restrictions, the situation concerning new vehicle registrations is also getting better with each passing month. However, compared to the same time last year, the figures are certainly bleak, and it looks like they will take a fair bit of time to get back to the pre-COVID levels.
According to the latest data released by the Federation of Automobile Dealers Associations (FADA), in June 2020, RTOs across the country reported a total figure of 9,84,395 for new vehicle registrations. Compared to May 2020, this figure is up from 2,02,697, which is a remarkable recovery. While the registrations were down by nearly 89% YoY in May, they are down by 42% YoY in June. The improvement in figures can largely be attributed to nearly 100% vehicle dealerships resuming operations across the country, barring those regions where the lockdown has been imposed again.
Looking at the vehicle category bifurcation, Commercial Vehicles (CVs) seem to be the worst hit, with close to 84% YoY decline (June 2020). The vehicle category with the biggest share in the pie, Two Wheelers (2W), witnessed close to 41% YoY decline, whereas Passenger Vehicle (PV) registrations were down by about 38% YoY.
|Vehicle Category/Figures||June 2020||June 2019||YoY%|
On the upside, tractor sales picked up dramatically in June. This happens to be the only vehicle category that has registered close to 11% YoY growth for the month. This is indicative of strong bounce-back in rural demand, and according to Mr Ashish Harsharaj Kale (President, FADA), 'The positive rural sentiment, if backed with demand-boosting measures by the government, can ensure the quickest return to normalcy of the auto industry amongst all core industries, thereby impacting the overall consumer sentiment positively.'
|Vehicle Category/Figures||May 2020||May 2019||YoY%|
As for FADA's outlook for the month of July, 'With an assumption of no further lockdown and continued reopening measures, it is anticipated that vehicle registrations will see somewhat similar trends and mostly will better the June numbers, with further green shoots of demand in newer geographies and segments.'