Auto Registrations in April 2021 dipped 28 percent MoM in view of the second wave of Covid-19 that has hit auto retail
The second wave of the COVID-19 pandemic has not only hit India but has come back with a vengeance. Severe conditions across the county are getting reported as numbers of positive cases escalate and death rates surge. This has once again created an adverse effect across the country’s economy which was slowly but surely getting back to near normal.
The auto industry is once again in turmoil. Auto registrations dipped MoM in April 21 by 28 percent and this de-growth was reported across all categories such as two and three wheeler sales, passenger and commercial vehicles.
Two wheeler sales dipped by 28 percent while there was a 43 percent de-growth in terms of three wheeler retails. Passenger vehicle retails fell 25 percent while Commercial vehicle sales also suffered de-growth of 24 percent MoM.
Car Retail Sales FY21
Taking leading automakers in India into account, passenger vehicle sales dipped 13.42 percent in FY21 over retail sales in FY20. Tata Motors, Kia India and MG Motor were the only 3 automakers to report positive sales. Maruti Suzuki however, ruled the segment despite de-growth of 13.26 percent with 1,62,752 units retailed in FY21, down from 13,40,430 units sold in FY20.
Hyundai was at No.2 with retails at 4,14,304 units, down 11 percent as against 4,65,522 units sold in FY20. Sales of the Hyundai Creta were primarily responsible accelerating company sales while the Venue also played a major role in increasing company sales in the past year.
Retail sales of Tata Motors ended on a more positive note in FY21. The company reported a 15.58 percent growth to 1,87,809 units in FY21, up from 1,62,489 units sold in FY20. Tata Motors expects to see a surge in sales in the coming months, thanks to launch of new HBX.
At No.4, Kia Motor posted positive sales as well. Retails increased 108.92 percent to 1,31,274 units, up from 62,835 units sold in FY20. Mahindra also posted de-growth in terms of retail sales down 40 percent as compared to sales in FY20 as did automakers such as Renault, Honda and Ford.
Yet another automaker to report positive retails was MG Motor with 40.65 percent growth in FY21. Total retails stood at 26,739 units, up from 19,011 units retailed in FY20. MG Motor retailed 2,565 units in April 21 as the automaker shut its plant for 7 days so as to conserve industrial oxygen so the same could be diverted for healthcare purposes.
Skoda, Nissan, Jeep and Force Motors also reported de-growth in terms of retail sales in FY21 with Force Motors suffering the highest de-growth at 81.45 percent to 1,373 units in FY21, down from 7,401 units retailed in FY20.
FY20-21 Vehicle Registrations
Taking into account the FY20-21 period. Vehicle registrations dipped 30 percent and were even below FY12-13 levels. Retails across every segment suffered lower sales except for the Tractor segment which grew by 16 percent in view of better climatic conditions, better financial schemes and good harvests.
The other categories saw lower sales to levels which was the lowest in 8 years. Two wheeler retail sales dipped 32 percent YoY while three wheeler sales were down 64 percent while commercial vehicle and passenger vehicle sales fell 49 percent and 14 percent respectively.