Year on Year slide of vehicles registrations in June at 48.95 per cent in Gujarat

Gandhinagar: Gujarat witnessed 49.90% slide in registration of new two-wheelers, 90.48% slide in registration of new three-wheelers (rickshaws, chhakdas), 75.96 per cent slide in commercial vehicle, 26.28 per cent slide in passenger vehicles and 31.70 per cent slide in registration of new tractors when compared between June 2019 and June 2020. Combined slide of all these categories was 48.95 per cent in June.

Overall the nationwide situation is almost same barring the fact that Assam, Bihar, Himachal Pradesh, Jharkhand, Karnataka, Maharashtra,Odisha, Puducherry, Rajasthan, Tamil Nadu have shown increase in registration of new tractors in June 2020 compared to June 2019. Tripura and Mizoram have also witnessed increase in registration of three-wheelers in June 2020 compared to same month last year.

These figures are as per the data shared by Federation of Automobile Dealers Associations.

FADA STATEMENT

The Federation of Automobile Dealers Associations (FADA) today released the
Monthly Vehicle Registration Data for the Month of June’20.

June’20 Retail Sales

Commenting on how June’20 performed, FADA President, Mr Ashish Harsharaj Kale said, “Unlock 1.0
coupled with increase in demand from the rural market has boosted the retail sales with respect to
the May month’s numbers.

At the end of June, Almost 100% dealership outlets (showroom and workshops) were operational
across the country, barring a few cities and towns which have once again implemented stringent
Lockdown.

June registrations, although better than May is still not Indicative of the actual demand situation as
Lockdown woes continue in some parts and supply side is far from its complete potential.

Overall weak economic sentiments coupled with rising number of Covid-19 patients has led to weak
consumer confidence especially in Tier – 1 cities, as customers stopover from concluding their purchase
as fear of community spread and therefore a return of complete lockdown persists.

Rural market lead by a robust crop situation of previous harvest and timely arrival of monsoons has
witnessed demand recovery in comparison to urban areas, therefore leading surge in retail sales of
tractors as well as positively impacting 2W and Small Commercial Vehicles.

The Positive Rural Sentiment if backed with demand boosting measures by the Government can
ensure the quickest return to normalcy of the Auto Industry, amongst all Core Industries, thereby
impacting the Overall Consumer Sentiment Positively.

FADA would once again urge Our Government for urgent introduction of Attractive Incentive based
Vehicle Scrappage Policy which today is one of the dire needs for the revival of the Commercial Vehicle
Sector and especially M&HCV’s, as the sector faces major headwinds in demand revival.”

Outlook for July

With an assumption of no further lockdown and continued reopening measures, it is anticipated that
Vehicle Registrations will see somewhat similar trends and mostly will better the June numbers, with
further green shoots of demand in newer geographies and segments.

Overall Auto demand though continues to be a challenge coupled with supply side constraints as well
Constraints in Retail Lending from NBFC’s, normalcy in demand still seems quite distant and not before
the festive season.

Despite the positive trends in the rural markets, the Annual Outlook currently continues to be grim
with projected sales to witness a de-growth range of 15% – 35% across various segments in FY21, except
for the Tractor segment, which looks set to clock a positive annual growth.

DeshGujarat