New Delhi: Vehicle registration for June tumbled by 42 percent as the Indian economy continues to battle with Covid-19, the Federation of Automobile Dealers Associations (FADA) releasing the monthly vehicle registration data for the month of June 2020 said on Tuesday.
On a Year on Year basis, 2-Wheeler segment showed degrowth by 40.92 percent, 3-Wheeler by 75.43 percent, CV by 83.83 percent, and PV by 38.34 percent.
However, tractors registrations continue to march ahead with June numbers showing a growth of 10.86 percent, FADA said.
Ease in nationwide lockdown (Unlock 1.0) has boosted the number of vehicles registered compared to May last month. Robust Demand recovery has been observed in rural market leading to rise in sales volume of tractors, followed by 2W, small commercial vehicles. However, M&HCV and PV sales particularly in urban pockets play laggards as Lockdown persists in many cities.
Demand boosters from the government can ensure speedier Auto demand revival. Attractive vehicle scrappage policy is one of the dire needs for revival of CV market, FADA added.
June registrations, although better than May is still not Indicative of the actual demand situation as Lockdown woes continue in some parts and supply side is far from its complete potential. Overall weak economic sentiments coupled with rising number of Covid-19 patients has led to weak consumer confidence especially in Tier – 1 cities, as customers stopover from concluding their purchase as fear of community spread and therefore a return of complete lockdown persists,” FADA President, Ashish Harsharaj Kale said.
FADA expects that the coming month may show some promise for vehicle registrations.
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