As per vehicle registration data released by Federation of Automobile Dealers Associations (FADA), three-wheeler sales have registered 20.70% YoY growth in February 2020
This is higher than January, when sales growth was 9.17%. In February 2020, a total of 65,752 three-wheelers were sold, as compared to 54,474 units in February last year. Double-digit growth must be a welcome development for leading three-wheeler manufacturers such as Bajaj Auto, Piaggio, Mahindra & Mahindra and TVS Motor Company.
Looking at state-wise sales data provided by FADA, we can see that maximum number of three-wheelers were sold in Uttar Pradesh. YoY sales growth was 43.84%, up from 7,007 units in February last year to 10,079 units in February 2020. Uttar Pradesh usually leads in three-wheeler sales, as it is the most populous state in the country. People residing in its myriad of towns and cities rely heavily on three-wheelers for their commute.
State-Wise Three Wheeler Sales Feb 2020
|19||J & K||656||396||260||65.66|
|29||D & D||6||36||-30||-83.33|
At number two is Bihar with sales of 8,135 units in February 2020. This translates into YoY growth of 59.85%, as against 5,089 units sold in February last year. Next is Maharashtra with sales of 7,324 units in February 2020. Growth has turned negative (-14.35), as compared to 8,551 units sold in February last year.
At number four is Gujarat with sales of 5,452 units in February 2020. Gujarat is the second state in the top ten list to register negative growth. Sales are down -17.57%, as compared to 6,614 units sold in February last year.
All remaining states in the top ten list have positive YoY growth. Karnataka sold 4,764 three-wheelers in February 2020, followed by Tamil Nadu with 4,350 units, Jharkhand 3,140, West Bengal 3,086, Assam 2,812 and Haryana 2,643 units.
Among the top ten, maximum YoY growth in percentage terms has been recorded by Jharkhand. A total of 3,140 three-wheelers were sold in the state in February 2020, which translates into a whopping 160.80% YoY growth, as against 1,204 units sold in February last year.
Among the 29 states covered by FADA report, the ones with negative growth are only a handful. These include Kerala (-4.68%), Arunachal Pradesh (-32.43%), Puducherry (-27.78%), and Daman and Diu (-83.33%). Maximum growth in percentage terms has been recorded by Tripura, where three-wheelers sales have increased by a staggering 501.35%.
In its report, FADA has pointed to key challenges being faced by auto industry. Some of the prominent issues include unsold inventory of BS4 models and reluctance on part of banks and NBFCs to provide finance options for such vehicles. FADA has also talked about coronavirus pandemic, which is negatively impacting consumer sentiments. In view of these factors, FADA has provided a negative outlook for March 2020.