October 30, 2020

Passenger car gross sales dip 38% in June as COVID-19 continues to influence offtake: FADA

Passenger car retail gross sales in June fell 38.34 per cent to 1,26,417 models as in comparison with the identical month final yr as COVID-19 continued to influence the sentiment of patrons, car sellers‘ physique FADA mentioned on Tuesday.

Based on Federation of Vehicle Sellers Associations (FADA), which collected car registration knowledge from 1,230 out of the 1,440 regional transport places of work (RTOs), passenger car gross sales stood at 2,05,011 models in June 2019.

Two-wheeler gross sales declined 40.92 per cent to 7,90,118 models final month as in contrast with 13,37,462 models in June 2019.

Industrial car gross sales plunged 83.83 per cent to 10,509 models as towards 64,976 models within the year-ago interval.

Three-wheeler gross sales fell 75.43 per cent to 11,993 models final month as in contrast with 48,804 models in June 2019.

Complete gross sales throughout classes slipped 42 per cent to 9,84,395 models in June 2020 as towards 16,97,166 models within the year-ago month.

Commenting on the June retail gross sales, FADA President Ashish Harsharaj Kale mentioned the general weak financial sentiment coupled with rising variety of COVID-19 sufferers has impacted client confidence particularly in larger cities.

He, nevertheless, famous that rural markets, led by a strong crop harvest and well timed arrival of monsoons, witnessed demand restoration compared to city areas, subsequently resulting in a surge in retail gross sales of tractors in addition to positively impacting offtake of two- wheelers and small industrial automobiles.Â

Kale urged the federal government for pressing introduction of engaging incentive based mostly car scrappage coverage for the revival of industrial car sector.

On gross sales outlook for July, Kale mentioned:”With an assumption of no additional lockdown and continued reopening measures, it’s anticipated that car registrations will see considerably comparable traits and principally will higher the June numbers, with additional inexperienced shoots of demand in newer geographies and segments.”

Challenges like provide facet constraints and retail lending from NBFCs proceed and thus normalcy in demand nonetheless appears fairly distant and never earlier than the festive season, he added.

The annual gross sales outlook continues to stay grim with a projected de-growth anticipated between 15- 35 per cent throughout varied segments within the present fiscal, aside from the tractor section, which appears to be like set to clock optimistic annual progress, Kale mentioned.