Covid-19 impact | Consumers desert showrooms as auto sales skid in April

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Retail automobile sales in April witnessed a 28% decline at 11,85,374 units compared to March 2021, according to vehicle registration data released by the Federation of Automobile Dealers Associations (FADA) on May 10.

FADA data showed total vehicle registrations in India fell by 29.85% to 1,52,71,519 units in the financial year 2020-21, the lowest in the last eight years. Total vehicle registrations were at 2,17,68,502 units in the fiscal year 2019-20.

All categories of vehicles, except tractors, were in red in FY21 with a two-wheeler (2W), three-wheeler (3W), commercial vehicles (CV), and passenger vehicles (PV) falling by 31.51%, 64.12 %, 49.05%, and 13.96% respectively — the lowest in last eight years and way below the FY13 levels, FADA said in a statement.

Passenger vehicles (PV) registrations were at 23,86,316 units last fiscal as against 27,73,514 units in FY20, down 13.96 % while two-wheelers witnessed a dip of 31.51% to 1,15,33,336 units compared to 1,68,38,965 units in the previous fiscal.

Three-wheeler registrations in FY21 were down 64.12% at 2,58,174 units, as compared to 7,19,594 units in FY20, while CV registrations were at 4,48,914 units as against 8,81,114 units, a decline of 49.05%, FADA said.

Tractor registrations, however, grew by 16.11% last fiscal at 6,44,779 units as compared to 5,55,315 units in 2019-20.

Lockdown impact

As for April 2021, FADA said since India was under complete lockdown in April 2020 and not a single vehicle could be sold, a year-on-year comparison is not possible.

When compared to the previous month of March, FADA said in April 2021 total vehicle registrations were down 28.15% at 11,85,374 units versus 16,49,678 units.

PV registrations were down 25.33% at 2,08,883 units in April, as against 2,79,745 units in March this year, while those of 2W declined by 27.63% at 8,65,134 units, as against 11,95,445 in the previous month, it added.

Registrations of CV were at 51,436 units in April as compared to 67,372 units in March, down 23.65%. Tractor registrations also witnessed a dip of 44.58% last month at 38,285 units, as compared to 69,082 units in March this year, the automotive dealer’s body said.

FADA view

“India is currently facing one of its toughest times with the second wave of COVID creating havoc in everyone’s life. This time, the spread is not only limited to urban markets but has also taken rural India in its grasp,” said FADA President Vinkesh Gulati.

“Unlike last year, the lockdown this time around has been imposed by state governments and not the central government. Due to this, there have been no relief announcements, which have come out till now either by the Centre or the RBI and auto Original Equipment Manufacturers (OEMs),” Gulati said.

He further said, “We also request the RBI to come out with guidelines/notifications for relaxation of loan repayment equivalent to the tune of the number of days of lockdown each state has announced.”

On the near-term outlook, FADA said the first nine days of May have seen extremely lean sales due to the lockdown announced by the majority of states as dealership outlets remained closed.

“Even where dealerships are open, the walk-ins have dropped to 30% and customers are delaying their purchase decisions,” he said.