Auto retail sales down by 88.87% in May, June outlook continues to be grim

In May, retail sales of passenger cars declined by 86.97 percent and two-wheelers by 88.80 percent. Overall, auto retail sales declined 88.87 percent, a group representing vehicle dealers.

April observed that there are zero retails due to the lockdown imposed for coronoviruses.

Out of 18,21,650 units in May 2020, total auto sales declined by 2,02,697 units in May 2020. Passenger vehicle sales fell from 2,35,933 units to 30,749 units a year ago, while two-wheeler sales fell from 13 to 1,700,039 units. , 19,842, one year ago.

Commercial vehicles declined by 96.63 percent to 2,711 units from 80,392 units and sales of three wheelers declined by 96.34 percent from 51,430 units to 1,881 units.

While the lockdown was gradually relaxed in early May, auto dealerships and workshops opened for the first time after 40 days. At the end of May, 60 per cent of the 26,500 outlets had showrooms and 80 per cent workshops were operational across the country. The Federation of Automobile Dealers Association (FADA) said that the registrations are not indicative of demand status because the lockdown is still continuing in many parts.

“With the assumption of no further lockdowns and measures to continue again, there will be substantial pickup in auto retail compared to May, but with the overall outlook projected to grow beyond the de-growth of 25 percent YoY. Continues., ”Said Ashish Harshraj Kale, President of FADA.

He said that in the first 10 days of June he saw extremely low demand despite most dealerships, which are now open for business. Weak consumer confidence continues, particularly in urban areas, as customers abstain from ending their purchases due to the threat to the community and the return to full lockdown remains.

“With 7.6% of GDP, multiplier effect for many workforce and many ancillary sectors, the auto industry can be the driving force to increase consumer confidence and improve sentiment, if demand revives as return. To be supported with short-term incentives to do. The normal situation seems very difficult until the festive season.

“In a growing country like India, mobility is still a necessity and not a luxury, with credit support increasing demand can bring auto sales back to positive zones within 30-60 days and help build consumer confidence,” he said. Can do.

The FADA states that the overall outlook remains grim with sales projected to witness 25 percent YoY’s de-growth.

Urban demand will have to face the challenges ahead with Covid-19 uncertainty. On the other hand, the government’s push for infrastructure spending and the recently announced positive measures for the agriculture sector will help meet rural demands. This will be further strengthened with the general spread of monsoon which will help Tier 2 and 3 dealers to face lower growth than their urban peers.

Back to top button