Vehicle registration plummets by 88.87% in May 2020: FADA

FADA said that demand Trend in first 10 days of June shows extremely weak consumer sentiment.

Vehicle registration plummets by 88.87% in May 2020: FADA

New Delhi: The Federation of Automobile Dealers Associations (FADA) on Thursday released the Monthly Vehicle Registration Data May 2020 that showed that all vehicle categories registered unprecedented de-growth Year on Year basis.

The vehicle registration for the Month of May plummeted by -88.87% as India continues to battle with Covid-19 and Nationwide lockdown, FADA said. 2-Wheeler declined by -88.8%, 3-Wheeler by -96.34%, CV by -96.63%, PV by -86.97% and tractors registrations fell by -75.58% respectively, the FADA report added.

“For the first time in history, the month of April witnessed Zero Retails. While lockdown was gradually relaxed beginning May, Auto Dealerships and workshops opened for the first time after 40 days in many cities,” FADA President Ashish Harsharaj Kale said.

He said, “At the end of May, out of 26,500 outlets about 60% showrooms and 80% workshops were operational across the country. May registrations are hence not indicative of the demand situation as the Lockdown still continued in many parts.”

FADA said that demand Trend in first 10 days of June shows extremely weak consumer sentiment. Fear of Covid-19’s community spread and a second lockdown keeps customers away from purchases.

“First 10 days of June witnesses extremely low demand despite most dealerships which are now open for business. Weak consumer confidence especially in urban areas continue to haunt as customers stay away from concluding their purchase due to threat of community spread and return of complete lockdown persists,” Kale said.

FADA has appealed to the Government to stimulate demand in the short term and support Auto Industry and millions of jobs which it provides.