Hindustan Times (Delhi)

Auto sales dip 25% in April

- Malyaban Ghosh malyaban.g@livemint.com

Retail sales of automobile­s plunged into negative territory in April after six months of growth as the raging second wave of the pandemic and lockdowns across states crimped consumer sentiment and demand.

Showroom sales of passenger vehicles fell 25.3% sequential­ly to 208,883 units during April, showed data issued by the Federation of Automobile Dealers Associatio­ns (Fada) on Monday. Vehicle sales were hit initially due to lockdown measures imposed in Maharashtr­a to contain the spread of the pandemic. Several other states started taking similar steps from the second half of April, further impacting sales.

Vehicle sales are usually compared on a correspond­ing basis, but in April last year, automakers had to close their factories and showrooms as the Union government imposed a strict nationwide lockdown from March 18. Subsequent­ly, operations remained suspended till the first week of May and, in some cases, till early June.

Vinkesh Gulati, president of Fada, said registrati­ons of new vehicles in April fell in double digits on a month-on-month basis as most states initiated lockdown measures—either partially or fully—from the first week of April. It began with Maharashtr­a, followed by Chhattisga­rh, Delhi and Rajasthan, among others.

“Fada humbly requests auto

NEW DELHI:

manufactur­ers to handhold their dealers the way they did last year during the first phase of the pandemic as the situation is very grim in most states, and dealer principals, as well as their teams, are fighting for their survival. Fada also requests the government to come out with a financial package the way they did last year. We also request the RBI to come out with guidelines/notificati­ons for relaxation of loan repayment equivalent to the tune of the number of days of lockdown each state has announced,” Gulati said.

The sudden surge in Covid-19 cases has also taken a toll on manufactur­ing and constructi­on, which impacted sales of commercial vehicles that fell 23.7% sequential­ly in April to 51,436 units.

Registrati­on of two-wheelers also declined 27.6% sequential­ly in April to 865,134 units as the spread of Covid-19 in rural areas led to a sharp fall in customer sentiment during the marriage season. Demand for two-wheelers, especially in the entry-level segment, has been softening due to an increase in vehicle prices and the resumption of public transport. Overall, vehicle sales dropped 28.1% to 1.19 million units in April.

In 2020-21, registrati­ons of passenger vehicles declined 13.9% to 2.77 million, while the same for two-wheelers fell 31.5% to 16.83 million units, according to Fada. Showroom sales of commercial vehicles also declined 49% to about 881,000 units.

 ?? HT PHOTO ?? Showroom sales of passenger vehicles fell 25.3% sequential­ly to 208,883 units during April.
HT PHOTO Showroom sales of passenger vehicles fell 25.3% sequential­ly to 208,883 units during April.

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