Auto sales drop 55% in May as Covid puts break on vehicle registrations

Automobile retail sales in the country declined by 55 per cent in May as compared to April this year as lockdowns across various states amid second wave of the coronavirus pandemic hit vehicle registrations, automobile dealers' body FADA said on Thursday.

All the segments were hit last month as showrooms across various states were forced to down shutters amid the pandemic led restrictions. Total registrations across categories in May dropped to 5,35,855 units as compared to 11,85,374 units in April this year.

According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,294 out of the 1,497 regional transport offices (RTOs), passenger vehicle (PV) sales declined by 59 per cent in May as compared with 2,08,883 units in April this year.

Two-wheeler sales also witnessed a decline of 53 per cent at 4,10,757 units last month, as compared to 8,65,134 units in April.

Similarly, commercial vehicle sales dropped by 66 per cent to 17,534 units last month, as against 51,436 units in April.

Three-wheeler sales saw a decline of 76 per cent to 5,215 units last month, from 21,636 units in April this year while tractor sales witnessed a dip 57 per cent to 16,616 units last month, against 38,285 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.

While a handful of original equipment manufacturers (OEMs) -- Tata Motors (CV unit), Renault, Bharat Benz and HMSI have announced financial help to their channel partners, others are yet to do so, he said.