February 25, 2024
The ongoing COVID-19 outbreak continues to have a devastating effect on the sale of cars in India, further threatening the auto industry. According to the Federation of Automobile Dealers Associations (FADA), in the fiscal period (FY) 20-21, the total vehicle registrations fell by 30 percent, the same as the FY12-13 levels. The only segment of compensation that remained positive was the tractor sector, which increased 16 percent year-on-year.

All other categories were red, with two-wheeler (2W) and three-wheeler (3W) consumer vehicles and private cars declining by 32 percent, 64 percent, 49%, and 14%, respectively. They were also lower than they were in the past eight years.

The registration numbers for April 2021 fell by 28 percent on a month-to-month basis, including tractor registrations. The registration of 3W, 2W, and private vehicles, as well as tractor and consumer vehicles, fell by 28 percent, 43 percent, and 25 percent. Forty-five percent and 24 percent, respectively.

When discussing the April 2021 performance, FADA president Vinkesh Gulati stated, “India is currently facing one of its toughest times with the second wave of COVID creating havoc in everyone’s life. This time, the spread is not only limited to urban markets but has also taken rural India in its grasp.”

FADA emphasizes that the first nine days of the demand cycle in rural India indicate a lower consumer mood. It also pointed out that as the state-wide lockdown is ordered in the name of state governments, no relief announcements have been issued, as was last year.

The body declares that most countries have extended lockdowns until the month’s closing. The monsoon’s arrival could be the sole hope for relief since it will increase the agricultural output, which will help revive India’s rural economy. This could lead to categories like 2W and tractors being able to recover faster.

FADA anticipates a general recovery from the lows of FY21 to hit the peak of FY19 by FY23.

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