Although the numbers for wholesale may appear to indicate otherwise, registrations for cars in October 2020 dropped 24 percent year-on-year (y-o-y), and the only bright spot was that it increased by 5.11 percent over September 2020, as per information provided by the Federation of Automobile Dealers Associations (FADA) on Monday.
Segment-wise, two-wheelers experienced an increase in registrations by 26.82 percent during January Y-O-Y, three-wheelers saw a drop of 64.50 percent, while consumer registrations dropped by 30.32 percent, and private vehicles experienced a decrease by 8.80 percent. The only segment that saw an improvement was the tractor registrations, which recorded the highest growth of 55.53 percent growth year-over-year.
Data has revealed that one of the main reasons that led to a drop in the number of registrations for vehicles when compared to the previous year is the fact that Navratri and Diwali were held in October in the last year, while the current Navratri and Diwali are in November.
The report noted that even though there is an increase in the number of walk-in customers, the conversion figures have still not yet been picked up.
Speaking about the growing demand for new launches within the segment of passenger vehicles, Vinkesh Gulati, FADA president, stated, “While new launches continued to be in demand in the passenger vehicle segment, entry-level motorcycles witnessed a lean demand in the 2-wheeler segment. With supply-side mismatch, most of the passenger vehicle dealers ended with a limited stock of high-selling items and odd variants, which did not attract much demand. This, coupled with lower discounts, compared to last festivals, also played a spoilsport.”
He also noted that while tiny commercial cars are experiencing an increase in demand due to local transportation of goods back to pre-COVID levels. The medium and heavy commercial vehicle segment continues to be a victim.
The organization, in a statement, urged the Indian administration to declare an enticing incentive-based scrappage policy and to provide money to fund infrastructure projects.
The nation’s automotive retail body said that as this is the final leg of celebrations in India, as well as a handful of cities already suffering the effects oofthe third round of vthe irus, there is a sense of skepticism among consumers. The body said that as some European countries have implemented lockdowns and sourced spare parts, this could also create difficulties in supplying vehicles to Indian markets.
The lobbying group also voiced concerns about the car inventory and asked OEMs and dealers to keep a close eye on their ilistof vehicles since the demand for post-festivals will likely ttay low. “Since inventory levels are at their highest in this year’s financial year, it is possible that they will increase.
Can affect the financial health of dealers, leading to closings and job loss,” the statement said.