India’s total vehicle registration in July was at 1.14mn units, a drop of 36pc as compared to 1.79mn units in same period last year, according to Federation of Automobile Dealers Association (FADA).
Passenger vehicle (PV) registrations saw a drop of 25.19pc at 157,373 units in July compared to prior year period.
Three-wheelers and commercial vehicles (CV) declined by over 70pc, at 74.33 pc and 72.18pc, respectively.
Two-wheeler registrations were down by 37.47pc at 874,638 units from 1,39mn units in July last year.
FADA president Ashish Harsharaj Kale said July was better than June, though on a YoY basis, auto sector recovery is yet to be seen anywhere near normal after facing COVID-19 related disruptions.
Kale also informed that the rural market has shown growth due to the ongoing monsoon and sale of tractors, small CV, and motorcycles have positively increased. The sale of tractors saw a rise of 37.24pc.
The risk-averse approach of banks and NBFCs has affected demand for consumer vehicles, two-wheelers, and three-wheelers, despite abundance in liquidity, the report states.
FADA has appealed to the government for industry-specific demand boosters and a scrappage policy.
With Onam and Ganesh Chaturthi round the corner this month, FADA said it hopes the auto industry will start its recovery journey in a linear manner. Extreme caution is required by OEMs towards wholesale billing being in tune with retail sales to avoid dealer inventory build-up, FADA president said about the outlook for August.
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Source: FADA report