Passenger Vehicles for the first time saw positive growth coming back on Y-o-Y basis, according to the monthly vehicle registration data for September released by the Federation of Automobile Dealers Associations (FADA) on October 8
With social distancing on customer’s mind coupled with the Government’s push to normalise business conditions further and banks becoming more considerate to finance vehicles, entry-level passenger vehicles saw good demand thus indicating a preference for personal transportation over public, said the data.
New Launches and Vehicle availability played their part as catalyst. A lower base during last FY also helped the cause, it added.
Tractor sales continued their dream run as Kharif sowing witnessed record progress of area covered till date when compared to last year. With good Rabi season resulting in good disposable income, rural market also saw its rub-off effect on two-wheeler, small passenger vehicles and small commercial vehicles.
Overall, two-wheelers, three-wheelers and commercial vehicles continued to march ahead on M-o-M basis and inched up to narrow their gap with last year’s sale even though pre-COVID levels are yet to be seen across all categories, according to FADA.
The following are the highlights:
• Vehicle registrations in September continue to grow by 11.45 pc on M-o-M basis but falls by -10.24 per cent on Y-o-Y basis.
• On yearly comparison, two-wheelers de-grow by -12.62 pc, three-wheelers by -58.86 pc and CV by -33.65 pc. PV for the first time grew by 9.81 pc since unlocking began. Tractor registrations continued its upward journey with a magnificent 80.39 pc growth.
• With social distancing as the new normal, the Government’s push to open urban areas and easing of vehicle financing, entry level passenger vehicles saw good demand.
• Tractor sales in rural India continues its positive run as Kharif sowing witnessed record progress of area covered till date (1,116.88 lakh Ha area sown compared to 1,066.06 lakh Ha area.)
• Dealer Inventory for both 2W and PV are at highest levels in anticipation of a good festive season. Any further increase in inventory coupled with festival dampener will have a catastrophic impact on the health of auto dealerships.