New vehicle registrations down by 42% in June 2020

According to the data released by the Federation of Automobile Dealers Associations (FADA), vehicle registrations declined by 42% in the month of June 2020. Overall sales stood at 9,84,395 units, compared to 16,97,166 units in June 2019. 

Overall registrations increased compared to last month as the countrywide lockdown was lifted. Demand from the rural market also increased post lockdown. Factories are still not running at full capacity and dealerships and workshops are still not operational in some parts of the country. Therefore, these figures are not indicative of the actual demand.

2-wheeler sales declined by 40.92% to 7,90,118 units compared to the same month previous year.

3-wheeler sales were down 75.43%. 11,993 units were sold compared to 48,804 units in June 2019.

Passenger vehicle sales saw a decline of 38.34%. 1,26,417 units were sold compared to 2,05,011 units in June 2019.

Sales of commercial vehicle dropped by 83.83%. 10,509 units were sold in June 2020 compared to 64,976 units in the same month previous year.

Tractor sales increased by 10.86% to 45,358 units. This could be attributed to better harvest and timely arrival of monsoons.

FADA expects to see similar trends in new vehicle registrations in July 2020 as supply side constraints still hamper production while finance companies are also not running at full clip.

FADA estimates a de-growth of 15-35% across segments in FY2021. However, the tractor segment could see positive growth this year.