Just like other auto segments such as commercial vehicles (CV), three-wheeler sales also recorded negative YoY growth in June 2020
June was the first month after the lockdown when most dealers across the country had become operational. Even then, the effects of a weakened economy and negative consumer sentiments continued to push down three-wheeler sales. Across the country, a total of 11,993 units were sold in June 2020. This is around a quarter of the 48,804 units sold in June last year.
States with max three-wheeler sales
Uttar Pradesh tops three-wheeler sales with 2,329 units sold in June 2020. YoY sales are down by -69.88% in comparison to 7,733 units sold in June last year. Next in the list is Bihar with 1,754 units sold in June 2020. That’s a YoY loss of -55.86%, as against 3,974 units sold in June last year. Maharashtra takes the third spot with a total of 1,196 units sold in June 2020. This is less than one-fifth of the 7,285 units sold in June last year.
At number fourth is Assam with 1,124 units sold in June 2020. YoY sales have more than halved in comparison to 2,364 units sold in June last year. Karnataka takes the fifth spot with 958 units sold in June 2020. This is about one-fourth of the 3,828 units sold in June last year. The other states in top 10 list are Kerala (701 units), Delhi (506), Odisha (506), Gujarat (490), and West Bengal (469).
In June last year, a total of 14 states had sales of more than 1,000 units. In June 2020, only four states have three-wheeler sales above the 1k mark. Among the top ten states, max YoY loss in sales is that of Gujarat (-90.48%), followed by Maharashtra (-83.58%) and West Bengal (-79.24%). Among all states, max loss is that of Manipur (-100%), Nagaland (-100%) and Arunachal Pradesh (-99.21%). Manipur and Nagaland did not have even a single three-wheeler sold in June 2020.
Only two states managed to register positive growth in three-wheeler sales in June 2020. One is Tripura with 466 units sold, registering a massive 521.33% growth in YoY sales. The second state with positive growth is Mizoram with 15 units sold in June 2020.
FADA insights and forecast
According to the Federation of Automobile Dealers Associations (FADA), three-wheeler sales are likely to improve in the coming months. However, this will be possible only if OEMs and dealerships remain open. According to FADA, the auto sector is still facing challenges on the supply side. Loans from NBFCs are also not as easily available as they used to be. For FY21, FADA has said that the three-wheeler segment will register de-growth of around 15% to 35%.