Vehicle Registration For FY20-21 Drops 30%, an 8-Year Low

The only compensating segment that managed to remain positive was tractor which grew by 16 per cent year-on-year

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The ongoing COVID-19 pandemic continues to abysmally reflect on the sales of vehicles in India, further troubling the automobile sector. As per The Federation of Automobile Dealers Associations (FADA),  for financial year  (FY) 20-21, total vehicle registrations were down 30 per cent, which is as low as FY12-13 levels. The only compensating segment that managed to remain positive was tractor which grew 16 per cent year-on-year.


All other categories were in red with two-wheeler (2W), three-wheeler (3W), consumer vehicle and private vehicle falling by 32 per cent, 64 per cent, 49 per cent and 14 per cent, respectively, and were lowest in eight years.

Registration numbers for April 2021 dropped by 28 per cent on a month-on-month basis including tractors. Registration of 2W, 3W, private vehicle, tractor and consumer vehicle fell by 28 per cent, 43 per cent, 25 per cent, 45 per cent and 24 per cent, respectively.

Commenting on the April 2021 performance, FADA president,  Vinkesh Gulati said, “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 underlines that the first 9 days of demand in rural India show weaker consumer sentiment. It also highlighted that since the lockdown in states is called by the state government, no relief announcement has been made, unlike last year.

The body further states that as most of the states have extended the lockdown till the end of the month, and the arrival of monsoon can on time can be the only savior as it yields larger agriculture output, thus recovering the economy of rural India. This will result in categories like tractors and 2W to recover sooner.

FADA expects an overall recovery from the lows of FY21 and to reach the highs of FY19 only by FY23.