Auto sales crash 24% in October, month on month sees positive momentum

New Delhi: Vehicle registration have shown improvement on month on month basis in October, but it is still down as compared to year on year basis, the Federation of Automobile Dealers Associations (FADA) releasing the monthly vehicle registration data for the month of October 2020 has said.

While Vehicle Registrations in October grew by 5.11% Month on Month, it continued to fall by 24% Year on Year. On YoY, 2-Wheeler degrew by 26.82%, 3-Wheeler by 64.50%, CV by 30.32% and PV by 8.80%, FADA said. 

Only Tractor registration continued its positive momentum by posting growth of 55.53% in October. 

As India enters the last leg of festivities, even though customer walk-in’s have improved, healthy conversions are yet to see light of the day. Dealer Inventory for both 2W and PV are at its newest highs in this Financial Year, the Auto body said. 

FADA has requested all OEMs with a special request to 2W OEMs to assess the on-ground inventory level and curb production accordingly.

"While new launches continued to be in demand in Passenger Vehicle segment, entry level motorcycles witnessed a lean demand in 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. While Small Commercial Vehicles are seeing robust demand due to local goods transportation back to pre-covid levels, the Medium and Heavy Commercial Vehicles segment continued to bleed," FADA President, Vinkesh Gulati said. 

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FADA has urged the Government to urgently announce an attractive incentive based Scrappage Policy. It has also requested the Government to release funds for infrastructure projects which it has awarded as this will help demand generation and will lead to higher production of vehicles.

Vehicle Registrations in September continued to grow by 11.45 percent on MoM basis but fell by 10.24 percent on YoY basis, FADA had said. On yearly comparison, 2-Wheeler posted degrowth by 12.62 percent, 3-Wheeler by 58.86 percent and CV by 33.65 percent.