FADA auto retail data: BIG fall! Each category witness over 50% slump in May due to Covid 19

As the business and economic activity remained muted in the last couple of months amid the second wave of coronavirus, the total vehicle retails declined by around 55 per cent month-on-month basis and around 70 per cent as compared to the same month a year ago, said the Federation of Automobile Dealers Associations of India (FADA) in its monthly report.  

According to the report on MoM basis, “All the categories of the vehicle saw bloodbath as two-wheeler, three-wheeler, personal vehicle, tractor and commercial vehicle each fell by 53 per cent, 76 per cent 59 per cent, 57 per cent and 66 per cent respectively.” 

However, the FADA pointed out that the first nine days of June saw a better start than expected due to pent up demand as the corona cases started declining across the country, and it this performance continues, June’21 may result in almost equivalent sales when compared to June’20. 

Overall demand recovery to be slow as rural markets continue to struggle with post covid effects, the dealers’ association said in the monthly report, however, expecting a quick recovery in the market. 

Amid the tough time due to covid’s surge in the last couple of months, FADA thanks all OEMs (Original equipment manufacturer), which announced a financial package for auto dealers and appeals to all those, who are yet to announce a similar financial package like last year. 

FADA President Vinkesh Gulati said, “Since the current lockdown has already lasted over 30-45 days and still continuing in South India, revenue for most of the dealers are negligible as there were minimal sales. Due to this, dealers will not be able to repay their loan tranche payment which is getting due.” 

Hence, the association has requested Prime Minister Narendra Modi to instruct the Reserve Bank of India to grant a moratorium for Auto Dealers and release guidelines for relaxation of loan re-payment equivalent to a number of days of lockdown each state has been declaring.