Vehicle Registrations Drop 24% in October 2020

Federation of Automobile Dealers Associations highlighted that even though customer walk-ins have improved, healthy conversions are yet to rise

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While the wholesale numbers may seem to suggest otherwise, vehicle registrations in October 2020 fell 24 per cent year-on-year (y-o-y), with the only silver lining being it grew 5.11 per cent compared with September 2020, according to data released by the Federation of Automobile Dealers Associations (FADA) on Monday.

Segment-wise, two-wheelers saw a drop in registration by 26.82 per cent in the month y-o-y, three-wheelers plummeted 64.50 per cent, consumer vehicle registration fell by 30.32 per cent and private vehicles reported a drop by 8.80 per cent. The only segment which saw a positive sign was tractor registrations that recorded a 55.53 per cent growth y-o-y.


Data noted that one of the reasons behind such a dip in vehicle registration numbers compared to last year is because that Navratri and Diwali were in October last year, whereas this year Navratri and Diwali is in November.

The report highlighted that though there has been an increase in the number of customer walk-ins, the conversion numbers are yet to pick up.

Commenting on the rising demand of new launches in the passenger vehicle segment, Vinkesh Gulati, FADA president, said, “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 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 noted that small commercial vehicles are seeing a strong demand due to local goods transportation back to pre-COVID levels, the medium and heavy commercial vehicles segment continued to suffer.

The body, in a statement, urged the Indian government to  announce an attractive incentive-based scrappage policy and release funds for infrastructure projects.

The national automotive retail body noted that since this is the last leg of festivals in India along with few cities already witnessing the wrath of the third wave of the virus, there is a sense of cautiousness among customers. It said that since some European countries are implementing lockdown, procurement of spares will also be a cause of hindrance for smooth supply of vehicles in Indian markets.

The lobby group further raised its concern towards the  vehicle inventory and asked OEMs and dealers to keep an eye on their vehicle inventory as post festivals demand is expected to remain subdued. “Since Inventory levels are at its highest during this financial year, it may

impact dealers’ financial health thus leading closures and job losses,” the statement read.