The Federation of Automobile Dealers Associations (FADA) has published May 2021 vehicle retail data which shows a decline of over 70% compared to May 2019. Since the entire nation was under complete lockdown in May 2020, the comparisons are with May 2019. The Passenger Vehicle segment, in particular, registered a decline of over 63% last month compared to May 2019.
If you go for the MoM comparison, the PV segment registered a decline of nearly 59%. The two-wheeler segment too registered a MoM decline of over 52%. FADA President Vinkesh Gulati had the following to say –
The 2nd wave of covid has left the entire country devastated as there may not be a single household that did not get affected. Apart from urban markets, this time, even rural areas were badly hit. May 2021 saw continued lockdown in most of the states. Not surprisingly, Auto Retail for the month witnessed a bloodbath as sales fell by -55% on a MoM basis. Similarly, all categories of vehicles fell by a huge degree with 2W falling by -53%, 3W by -76%, PV by -59%, Tractors by -57% and CV by -66% respectively.
Auto Retail fraternity is in dire need of support. While a handful of OEMs (Tata Motors – CV, Renault, Bharat Benz and HMSI) have announced financial help to their channel partners, others are yet to do so. Hence, FADA humbly requests all those OEMs which have still not announced any financial assistance to kindly do it urgently.
Mr. Gulati also expressed concern that the dealers are unable to repay loans as there were barely any sales and lockdowns are still going on in South India.
OEM-wise market share data for May 2021 with MoM comparison:
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