The Federation of Automobile Dealers Associations (FADA) today released the monthly vehicle registration data for August 2020. Last month, total vehicle registrations in India stood at 11,88,087, a decline of almost 27 per cent, compared to the 16,23,218 units registered in August 2019. However, the industry saw a Month-on-Month (M-o-M) growth of about 4 per cent, compared to the 11,42,633 units sold in July 2020. But, compared to June 2020, when the total vehicle registrations stood at 9,84,395 units, the industry saw a growth of over 20 per cent in August 2020.
Commenting on the industry's performance Vinkesh Gulati, President, FADA India said, "With the start of Festival Season and the Government's continued effort to open up India, the month of August saw good numbers when compared to immediate previous months. August also saw an arrest in decline and pullback efforts on all fronts were visible, though, on YoY, all categories except Tractors continued to fall, though at a slower pace."
compared to July 2020, the passenger vehicle segment saw a M-o-M growth of over 13 per cent in August 2020
In August, total passenger vehicle registrations stood at 1,78,513 units, a decline of 7.12 per cent, as against the 1,92,189 vehicles registered during the same month in 2019. However, compared to the 1,57,373 vehicles registered in July 2020, the passenger vehicle segment saw a M-o-M growth of over 13 per cent. In fact, the PV segment saw the monthly decline reducing to single-digit after 5 months. Two-wheeler registrations took a bigger hit of 29 per cent decline at 8,98,775 vehicles, as against the 12,60,722 units sold in August 2019. But, compared to the 8,74,638 units registered in July 2020, the two-wheeler segment saw a growth of almost 3 per cent.
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Two-wheeler registrations took a bigger hit of 29 per cent decline at 8,98,775 vehicles, as against the 12,60,722 units sold in August 2019
However, wholesales numbers August 2020 were more encouraging, as a majority of auto manufacturers posted growth in their monthly sales volumes last month. While we still await SIAM data, according to Jato Dynamics India, last month, passenger car wholesales grew by 20 per cent compared to August 2019. Commenting on wholesales, FADA President Gulati said, "While OEM's are dispatching vehicles to Dealers with a purpose of stocking-up inventory for the upcoming festival season, retail sales are still at 70-75 per cent levels despite the low base of last year. FADA advises extreme caution to all OEMs and our Dealer fraternity to avoid excessive Inventory build-up thus leading to unmanageable interest cost which could further result in dealership closures."
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The three-wheeler segment witnessed a 70 per cent decline in registrations in August 2020
The three-wheeler segment took the biggest hit among all with total registrations standing at 16,857 vehicles, witnessing almost a 70 per cent decline compared to the 55,293 units registered in August 2019. The commercial vehicle segment also witnessed a decline of 57 per cent at 26,536 units, in August 2020, as against the 62,270 CVs registered during the same month last year.
