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Auto/Tech Business/Economy Cars National Chronicle Special

Vehicle registration dips by 42% in June: FADA

vehicles registered in june

New Delhi: Vehicle Registration was dipped by 42 per cent in June as the economy continues to
battle with Covid-19, the Federation of Automobile Dealers Associations (FADA) said in a press release on Tuesday.

It, however, said that ease in the lockdown (Unlock 1.0) has boosted the number of vehicles
registered compared to May.

Ashish Harsharaj Kale, president FADA,  said, “Unlock 1.0 coupled with an increase in demand from the rural market has boosted the retail sales with respect to the May month’s numbers”.

He said that at the end of June, almost 100 per cent dealership outlets (showroom and workshops) were operational across the country, barring a few cities and towns which have once again implemented stringent
Lockdown.

June registrations, although better than May is still not Indicative of the actual demand situation as
Lockdown woes continue in some parts and supply side is far from its complete potential.

Overall weak economic sentiments coupled with rising number of Covid-19 patients has led to weak
consumer confidence especially in Tier – 1 cities, as customers stopover from concluding their purchase
as fear of community spread and therefore a return of complete lockdown persists.

Rural market lead by a robust crop situation of previous harvest and timely arrival of monsoons has
witnessed demand recovery in comparison to urban areas, therefore leading surge in retail sales of
tractors as well as positively impacting 2W and Small Commercial Vehicles.

The Positive Rural Sentiment if backed with demand boosting measures by the Government can
ensure the quickest return to normalcy of the Auto Industry, amongst all Core Industries, thereby
impacting the Overall Consumer Sentiment Positively.

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