Auto sales down 55% in May 2021, FADA requests OEMs for financial assistance to their dealers

Passenger vehicle (PV) retail sales in May witnessed a decline of 59 percent to 85,733 units as compared to April as COVID-related disruptions across states hit offtakes, automobile dealers' body FADA said

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Releasing vehicle registration data for the month of May 2021, the Federation of Automobile Dealers Associations (FADA) stated that the month witnessed a bloodbath as sales fell by 55% on an MoM basis. All categories of vehicles fell by a huge degree with two-wheelers falling by -53%, three-wheelers by 76%, passenger vehicles by 59%, tractors by 57% and commercial vehicles by 66%, respectively. While a handful of OEMs (Tata Motors CV, Renault, Bharat Benz and HMSI) have announced financial help to their channel partners, others are yet to do so. Hence, FADA states that it is requesting all those OEMs which have still not announced any financial assistance to do it urgently.

Passenger vehicle (PV) retail sales in May witnessed a decline of 59 percent to 85,733 units as compared to April as COVID-related disruptions across states hit offtakes, automobile dealers’ body FADA said on Thursday.

According to the FADA, which collected vehicle registration data from 1,294 out of the 1,497 regional transport offices (RTOs), PV sales stood at 2,08,883 units in April this year.

Two-wheeler sales also declined 53 percent to 4,10,757 units last month, as compared to 8,65,134 units in April.

Similarly, commercial vehicle sales also declined 66 percent to 17,534 units last month, as against 51,436 units in April.

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Three-wheeler sales saw a decline of 76 percent to 5,215 units last month, from 21,636 units in April this year.

Tractor sales also witnessed a drop of 57 percent to 16,616 units last month, against 38,285 units in April.

Total registrations across categories declined by 55 percent to 5,35,855 units last month compared to 11,85,374 units in April.

“The second wave of COVID has left the entire country devastated as there may not be a single household which did not get affected. Apart from urban markets, this time, even rural areas were badly hit. May saw continued lockdown in most of the states,” FADA President Vinkesh Gulati noted.

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