Over 1.26 lakh passenger cars were sold in June 2020 – as compared to over 2.05 lakh sold in June 2019
As per vehicle registration data published by the Federation of Automobile Dealers Associations (FADA), car sales registered negative YoY growth of -38.34% in June 2020. As compared to 2,05,011 units sold in June last year, 1,26,417 units were sold in June 2020. All the states and Union Territories (UTs) have registered negative growth in car sales in June 2020.
Top 10 states in car sales
Uttar Pradesh tops the list with sales of 14,511 units in June 2020. Last year sales during the same period were 22,903 units, which translates into YoY loss of -36.64%. At number two is Gujarat with sales of 12,432 units, a YoY loss of -26.28%. Sales in June last year stood at 16,863 units. At third place is Karnataka with 11,232 cars sold in June 2020. That’s a drop of -31.91%, as against 16,497 units sold in June last year.
Maharashtra takes the fourth spot with sales of 10,920 units in June 2020. YoY sales have almost halved, as compared to 21,463 units sold in June last year. At fifth position is Tamil Nadu with 8,838 units sold in June 2020. The state has registered -42.68% YoY drop in sales in comparison to 15,419 units sold in June last year.
The other five states in top ten list are Kerala (8,624 units), Rajasthan (7,988), Haryana (7,896), Delhi (7,659), and Punjab (4,930).
States with max YoY de-growth
In the top 10, max YoY de-growth was registered by Maharashtra, followed by Kerala and Tamil Nadu. Among all states, max YoY de-growth came from Ladakh (-99.58%), followed by Manipur (-99.16%) and J & K (-88.57%).
Problem areas identified by FADA
Although an improvement can be seen in June car sales, as compared to April and May, FADA said that things are still a long way from becoming normal. Car sales have picked up pace in June, as most of the showrooms across the country have resumed operations. PV sales figures for June could have been slightly better, but it was impacted due to short-duration lockdowns imposed in specific states.
Consumer confidence continues to be weak in Tier-1 cities, as there is constant fear of lockdown being reimposed. Covid-19 cases are rising in several top cities, something that has created an atmosphere of fear and uncertainty. FADA said that auto companies have been facing challenges on the supply side as well.
To boost sales and restore normalcy in auto industry, FADA has requested the government to take favorable policy decisions in an urgent manner. FADA is hopeful that things will become a lot better by the festive season, provided that there are no further nationwide lockdowns. For the short term, FADA said that most auto segments including PVs will continue to witness negative YoY growth.
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