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10 NOVEMBER 2020 AL CIRCLE

Passenger Vehicle sales in India witness a decline of 8.8% Y-o-Y to 249,860 units in October 2020: FADA

EDITED BY : DEBANJALI SENGUPTA 2MINS READ

In October 2020, passenger vehicle (PV) registrations saw a year-on-year drop of 8.8 per cent to 249,860 units, according to the data shared by the Federation of Automobile Dealers Association (FADA). Total vehicle registrations at regional transport offices (RTOs), which are proxies for sales, fell by 23.99 per cent to 1,413,549 units year-on-year as the industry continued to battle the pandemic. 

Passenger Vehicle sales in India witness a Y-o-Y decline of 8.8% to 249,860 units in October 2020: FADA

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New launches were in demand in the passenger vehicle segment, while entry-level motorcycles witnessed a lean consumption in the two-wheeler segment. There was a supply-side mismatch, resulting in a limited stock of high selling items at most of the passenger vehicle dealers. This, coupled with lower discounts compared to the last festive season, played the spoilsport, FADA showed.

Vinkesh Gulati, President at FADA, said: “October continues to see positive momentum on a monthly basis but on a yearly basis the negative slide continues to increase. The 9-day Navratri period witnessed robust vehicle registrations but could not save October from going to red as compared to last year when both Navratri and Diwali were in the same month.”

He added small commercial vehicles saw a moderate demand in October as the local goods transportation is back to pre-COVID levels. But the medium and heavy commercial vehicles segment continued to bleed. 

Sales of three-wheelers saw a year-on-year decline of 64.50 per cent to 22,381 units in October. 

Global Bauxite Industry Insights

 Sales Outlook

About the outlook for the next month, FADA president said, “As we enter the last leg of festivals and with COVID getting into its 3rd wave in many cities, there is a sense of caution among customers. Due to the lockdown announced in a few European countries, problems in procurement of spares may affect the supply of vehicles in India. This will create a supply and demand mismatch affecting passenger vehicle sales.”

“FADA once again cautions both the OEMs and the dealers to keep a check on vehicle inventory as, after the festivals, demand may remain subdued. Since inventory levels are at their highest during this financial year, it may impact the dealers’ financial health, thus leading to closures and job losses,” he said.


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EDITED BY : DEBANJALI SENGUPTA 2MINS READ

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