Vehicle retail sales drop 30% in FY21, may recover only by FY23
NEW DELHI: The total vehicle registrations in India fell by 29.85 per cent to 1,52,71,519 units in financial year 2020-21, the lowest in the last eight years, the Federation of Automobile Dealers Associations (FADA) said on Monday.
Total vehicle registrations were at 2,17,68,502 units in fiscal year 2019-20.
All categories of vehicles, except tractors were in red in FY21 with two-wheeler (2W), three-wheeler (3W), commercial vehicles (CV) and passenger vehicles (PV) falling by 31.51 per cent, 64.12 per cent, 49.05 per cent and 13.96 per cent respectively -- the lowest in last eight years and way below the FY13 levels, FADA said in a statement.
Passenger vehicles (PV) registrations were at 23,86,316 units last fiscal, as against 27,73,514 units in FY20, down 13.96 per cent, while those of two-wheelers dipped 31.51 per cent to 1,15,33,336 units as compared to 1,68,38,965 units in the previous fiscal.
Three-wheeler registrations in FY21 were down 64.12 per cent at 2,58,174 units, as compared to 7,19,594 per cent in FY20, while CV registrations were at 4,48,914 units as against 8,81,114 units, a decline of 49.05 per cent, FADA said.
Tractor registrations, however, grew by 16.11 per cent last fiscal at 6,44,779 units.
FADA expects the automobile industry to hit the highs of 2018-19 (Apr-Mar) from the lows of the last financial year only by 202223.
It said the second COVID19 wave had not only unsettled urban, but also the rural markets.
As a result, recovery is likely to take longer when compared to the post-first wave recovery. The industry is expected to see "absolute sluggishness" in May as most of states have announced lockdowns till the end of the month.
The association is hoping for a normal monsoon, which is central to the country's economy and it would also lead to rural markets recovering faster.
Categories such as tractors and two-wheelers will also have a rub-off effect in terms of recovery, it said.
13.96% Drop in passenger vehicle sales in FY21