New vehicle registrations down by 36.27% in July 2020

According to the data released by the Federation of Automobile Dealers Associations (FADA), vehicle registrations declined by 36.27% in July 2020. Overall sales stood at 11,42,633 units, compared to 17,92,879 units in July 2019.

The number of new vehicle registrations have increased compared to last month as the country continues to open up post the Covid-19 lockdown.

Rural demand is strong courtesy of a good monsoon spell and this has positively impacted tractor, small CV and motorcycle sales.

Despite high liquidity, banks and NBFCs are still being cautious when funding auto retail. Vehicle funding percentage has fallen by 10-15%, which is affecting demand revival.

2-wheeler sales declined by 37.47% to 8,74,638 units compared to the same month previous year.

3-wheeler sales were down 74.33%. 15,132 units were sold compared to 58,940 units in July 2019.

Passenger vehicle sales saw a decline of 25.19%. 1,57,373 units were sold compared to 2,10,377 units in July 2019.

Sales of commercial vehicle dropped by 72.18%. 19,293 units were sold in July 2020 compared to 69,338 units in the same month previous year.

Tractor sales increased by 37.24% to 76,197 units.

FADA expects the market recovery to continue in the month of August as it marks the beginning of the festive season.

Click here for a detailed analysis of the July 2020 sales figures.