Passenger vehicle sales fall 87 per cent in May as lockdown hampers recovery

The Federation of Automobile Dealers Associations has released vehicle sales data for the month of May which also shows three-wheelers and commercial
FADA has reported that passenger vehicle retail sales in May declined 86.97 per cent. (File photo) (REUTERS)
FADA has reported that passenger vehicle retail sales in May declined 86.97 per cent. (File photo)

Automobile dealers' body FADA on Thursday said passenger vehicle (PV) retail sales in May declined 86.97 per cent to 30,749 units as compared to same month last year, hit by coronavirus-led lockdown.

According to Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,225 out of the 1,435 regional transport offices (RTOs), PV sales stood at2,35,933 units in May 2019.

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Two-wheeler sales declined 88.8 per cent to 1,59,039 units last month as compared with 14,19,842 units in May 2019.

Commercial vehicle sales declined 96.63 per cent to 2,711 units as compared to 80,392 units in same month last year.

Three-wheeler sales declined 96.34 per cent to 1,881 units last month as compared with 51,430 units in year-ago month.

Total sales across categories declined 88.87 per cent to2,02,697 units last month as against 18,21,650 units in May 2019.

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"At the end of May, out of 26,500 outlets about 60 per cent showrooms and 80 per cent workshops were operational across the country. May registrations are hence not indicative of the demand situation as the lockdown still continued in many parts," FADA President Ashish Harsharaj Kalesaid.

Firstten days of June witnessed extremely low demand despite many dealerships open for business, he added.

"Weak consumer confidence especially in urban areas continues to haunt as customers stay away from concluding their purchases due to threat of community spread and return of complete lockdown," Kale said.

Also Read : Maruti cuts production by almost 98 percent in May

With a projected annual de-growth of 35 per cent by SIAM, on top of the 18 per cent de-growth faced last year, the dealership community faces its toughest year ever as volumes are estimated to reduce to half in a span of 20 months, he noted.

Kale said with tough business environment persisting, the dealer community is seeking increase in sales margins on vehicles.

"Lakhs of jobs and survival of hundreds of dealers is at stake if demand de-growth predictions hold true and operating economics remain unchanged," he added.

First Published Date: 11 Jun 2020, 12:49 PM IST

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