In the first nine days of June, auto sales have been better than expected owing to pent-up demand, according to Federation of Automobile Dealers Associations (FADA) in their release for May’s retail auto sales. The association noted that auto sector recovery in India may not be V-shaped like last time.
Total vehicle retail sales in May fell 54pc to 535,855 units from April, and down 70pc from 2019 levels, a fair comparison than last year when sales were reeling under the negative impacts of the pandemic. All auto segments reported over 50pc drop in sales compared to April.
The second COVID-19 wave has affected not only urban but the rural sales, too. The lockdown in 2021 has exceeded 30-45 days. The association has requested Original Equipment Manufacturers (OEMs) to financially assist auto dealerships during these tough times — companies like Tata Motors, Renault, Bharat Benz and Honda Motorcycle and Scooter India have already started doing this.
Retail Sales in May
-Two-wheeler sales in May fell 52pc to 410,757 units compared to April, and down 71pc from May 2019.
-Three-wheeler sales stood at 5,215 units, down 75pc from April and 89pc lower than 2019.
-Passenger vehicles sales fell 58pc to 85,733 units from a month ago and 63pc lower than 2019 May while tractor sales dipped 56pc to 16,616 units compared to April and down 57pc from 2019.
-Commercial vehicles sales were reported at 17,534 units, down 65pc from April and down 76pc from 2019 levels.