Covid second wave and subsequent lockdown impacts sales
Suppressed demand due to the Covid second wave and subsequent lockdown has pushed up the inventory levels of two-wheelers at dealerships across the country. Compared to an inventory of 15-20 days prior to the lockdown in the first quarter of 2020, the inventory has climbed up to 41-46 days at the end of the fourth quarter of 2021. This has put a majority of dealers in the two wheeler segment in the danger of defaulting on credit.
Vinkesh Gulati, President, FADA told BusinessLine “We already started the lockdown with a high inventory level of 40-plus days. After which, there have been no sales. A typical tranche cycle of a bank is 30-45 days, after which the dealers have to repay the loans. The dates for the repayment of loans are approaching. However, dealers are yet to sell off their inventory, so they don’t have the money to repay.”
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People wait at the coronavirus vaccine centre in Hyderabad on May 10, 2021.
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The World Health Organsiation said on Monday that the B.1.617 variant first identified in India last year was being classified as a variant of global concern. “We classify it as a variant of concern at a global level,” Maria Van Kerkhove, WHO technical lead on COVID-19, told a briefing. “There is some available information to suggest increased transmissibility.”
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Auto registrations in April skidded a whopping 28 per cent over March, as most States started imposed strict restrictions and local lockdowns to break the raging Covid second wave.
On a yearly basis, the total vehicle registrations fell 30 per cent to 1,52,71,519 units in financial year 2020-21, the lowest in the last eight years, the Federation of Automobile Dealers Associations (FADA) said on Monday. In 2019-20, 2,17,68,502 vehicles were registered.
According to the monthly FADA report, all categories closed April on a low, with two-wheelers (down 28 per cent, three-wheelers (3W) by 43 per cent, passenger vehicles (PV) by 25 per cent, tractors 45 per cent and commercial vehicles (CV) 24 per cent month-on-month.
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For FY20-21 vehicle registrations are below FY12-13 levels, lowest in eight years, according to Federation of Automobile Dealers Associations.
With almost all States resorting to either a partial or a full lockdown amid the second wave of COVID-19, total retail vehicles registrations declined by 28% to about 11.85 lakh units in the last month as compared to sales of over 16.49 lakh units in March 2021, the Federation of Automobile Dealers Associations (FADA) said on Monday.
For the full year ending March 31, 2021, total vehicle sales fell nearly 30% to 1.52 crore units. The annual vehicle registrations are below FY12-13 levels, lowest in eight years.
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New Delhi:
The total vehicle registrations in India fell by 29.85 per cent to 1,52,71,519 units in the financial year 2020-21, the lowest in the last eight years, the Federation of Automobile Dealers Associations (FADA) said on Monday.
Total vehicle registrations were at 2,17,68,502 units in fiscal year 2019-20.
All categories of vehicles, except tractors were in red in FY21 with two-wheeler (2W), three-wheeler (3W), commercial vehicles (CV), and passenger vehicles (PV) falling by 31.51 per cent, 64.12 per cent, 49.05 per cent and 13.96 per cent respectively the lowest in last eight years and way below the FY13 levels, FADA said in a statement.