Two wheeler segment suffered a de-growth of 37.47 percent in registration figures in July 2020
Even as the country continues to be in the eye of the COVID-19 storm, vehicle sales in India is slowly being resumed following lockdown announcement in March 2020 followed by total zero sales for April.
July 2020 sales were an improvement over sales in June 2020 indicating that buyers are steadily making their way back into company showrooms, which are now able to clear pending orders from March, April, and May 2020. This increase is despite constraints in the economy and in some instances, 10-15 percent price hike in view of shift to BS6 standards since April 2020.
Two wheeler registrations highest in UP
When taking into account statewise two wheeler registrations, it may be noted that Uttar Pradesh noted the highest figures. Total two wheeler registration in the state were at 1,63,513 units, down 37.58 percent when compared to registrations of 2,61,961 units in July 2019. Two wheeler registrations in Maharashtra were at 70,690 units, down 41.50 percent when compared to registration of 1,20,839 units in July 2019.
In view of these figures, FADA has appealed to the Government of India to being in policies which would boost demand in all auto segments. The automotive industry also seeks incentive based scrappage policy, which would help especially in revival of medium and heavy commercial vehicle segments.
FADA pins hopes on industry revival
Federation of Automobile Dealers Associations (FADA) has revealed Monthly Vehicle Registration figures for July 2020. Overall vehicle registration dipped by 36 percent YoY. Registration figures were an improvement of that seen in June 2020. The two wheeler segment suffered de-growth of 37.47 percent while three wheeler registrations dipped 74.33 percent. With auto rickshaws no longer in great demand as people restrict daily commutes to the best of their ability, the industry is free falling.
CV and PV registrations dipped 72.18 percent and 25.19 percent respectively. The only segment that showed some positive results was the Tractor segment wherein registrations increased by 37.24 percent. This is a regular pattern as tractor sales swell between monsoon and festive season each year. Expected good harvest continues to propel tractor and harvester sales, as a good crop equates to improved cash flow for farmers.
Taking into account two wheeler registrations, total registrations for July 2020 stood at 8,74,638 units, down from 13,98,702 two wheelers registered in July 2019. Strong demand for motorcycles was shown from rural markets, especially considering predictions of good monsoon season.
Demand revival was also in view of special financing benefits offered by two wheeler manufacturers who have entered into alliances with Banks and NBFCs. Automakers are keen eyed on a return to pre-COVID volumes, especially considering the upcoming festive season and the hope that no further longterm lockdowns are expected, especially where the auto industry was concerned.
|No||Two Wheeler Sales||Jul-20||Jul-19||Diff||%|
|19||J & K||5,609||10,438||-4,829||-46.26|
|26||D & D & D & N||498||1,108||-610||-55.05|