Automotive retail sales are up by 11.66 percent in September 2020, in line with the month-to-month automobile registration knowledge launched by the Federation of Automobile Dealers Associations (FADA). The automotive trade bought 13,44,866 models throughout segments (2Ws, 3Ws, CVs, PVs and tractors) in September, which was down 10.24 percent year-on-year, however a wholesome 11.66 percent progress over August 2020 sales.
13,44,866 models bought in September throughout all segments
Sales down 10.24 percent year-on-year
FADA anticipates a excessive progress interval for sales throughout the festive season
Upward development continues
Commenting on the month-to-month efficiency, Vinkesh Gulati, president, FADA stated, “With the government’s persistent effort to unlock India, the month of September continued to witness automobile registrations on a rise as compared to previous months. Passenger vehicles, for the first time, saw positive growth coming back on YoY basis. With social distancing on the customer’s mind, coupled with the government’s push to further normalise business conditions and banks becoming more considerate to finance vehicles, entry-level passenger vehicles saw good demand, thus indicating a preference for personal transportation over public. New launches and vehicle availability played their part as catalyst. A lower base during last FY also helped the cause.”
|Vehicle sales September 2020|
|Category||September 2020||September 2019||Change YoY||August 2020||Change MoM|
According to FADA, whereas not too long ago the financial revival was principally restricted to rural India and impression of COVID-19 was nonetheless felt on bigger states and concrete centres, the highest states that make up half of India’s financial output (Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat and West Bengal) have now began displaying indicators of revival as financial actions in these states are at their peak since lockdown started in March. This has additionally helped in creating a requirement for car sales.
Festive season to additional allow excessive progress
The months of October and November brings with themselves the much-awaited festivals of Navratri, Durga Puja and Diwali. With no extra lockdown introduced by the Central authorities, FADA anticipates a excessive progress interval throughout these two months for car sales in the nation.
In addition, the federal government’s consideration to waive off curiosity on curiosity throughout the moratorium interval for loans up to Rs 2 crore will additional assist in enhancing buyer sentiment, thus making them conclude automobile buy choices throughout the festivities.
With banks and NBFCs additionally gearing up with varied pageant affords to woo retail clients, auto sales are anticipated to witness a renewed progress and should shut at par with final yr. Passenger autos and two-wheelers are anticipated to paved the way.
On the opposite hand, as a caveat, with pageant season across the nook and elections approaching in Bihar, FADA says the danger of COVID-19 unfold resurging could play a spoilsport in particular areas.
FADA advises warning to producers and sellers
The supplier fraternity physique additionally cautioned that, at current, the stock for two-wheeler stands at 45-50 days and passenger automobile at 35-40 days. Any dampener in automobile sales throughout the upcoming festivals can have a catastrophic impression on sellers’ monetary well being.
FADA has as soon as once more suggested excessive warning to producers and sellers in opposition to constructing any additional stock, as it might result in a disastrous state of affairs just like the final two festive seasons when sales had been beneath the mark.
Maruti Suzuki, Tata Motors and Kia Motors acquire market share
In September 2020, Maruti Suzuki, Kia Motors and Tata Motors, all gained a major quantity of market share in comparability to September 2019. Meanwhile, Mahindra, Honda Cars India and Toyota Kirloskar, all misplaced a superb quantity of market share in comparison with the identical time final yr. Given beneath is a desk that exhibits September 2020’s Top 10 passenger automobile sales by carmakers.
|Top 10 passenger automobile sales by carmaker|
|Company||September 2020||Market share (Sep 20)||September 2019||Market share (Sep 19)|
Two-wheelers register robust sales in September 2020
Passenger automobile sales see sharp 35 percent uptick in September 2020
Kia, Audi, Hero provide finest supplier help as per FADA examine