Auto industry struggling with Corona, but 30% growth in tractor registrations; Three-wheeler demand increases in Tripura-Mizoram
The Federation of Automobile Dealers Association (FADA) has released the vehicle registration data for November. According to this, 18.28 lakh units were sold in November, which is 19.29% less than year-on-year. There was a sale of 22.65 lakh units in November 2019. However, so far this year, tractor sales have increased by more than 30%.
The auto industry is yet to recover due to Corona. This year, February was the only month when auto sales were up 2.60% on a year-on-year basis. This is also the first time in the history of auto sales, when not a single vehicle was sold in March. FADA releases a list of auto sales in the country every month. However, the vehicle registration data was not released in March and April this year.
The Auto Expo 2020 was held in February. It has also been the only auto event of the year so far, because Corona took the country by its grip. This also rocked the auto industry completely. We are giving full details of the condition of the auto industry before and after Covid-19.
It is clear from these figures that the year started with a decline in terms of data from year to year. Although sales showed an increase in February, Corana brought auto sales to the ground after that. While not a single vehicle was sold in March, the decline in May was more than 88% on a year-on-year basis. After this, there was an increase in sales figures, but there was a decline year after year.
While Corona hit the country’s auto industry deeply, the sales of tractors broke the old sales records. Tractor sales have increased by more than 30% so far this year. Tractor sales were down year-on-year only in May. Tractor sales were up by more than 80% on a year-on-year basis in September. Farming was good this year compared to last year. At the same time, the farmers benefited from the increased demand for food items and grains during the lockdown.
Demand for tractors increased in these states: Tractor sales took place in almost all states of the country between Corona and lockdown. The states where demand was highest include Bihar, Gujarat, Haryana, Karnataka, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh. During this period, an average of 12,177 tractors were sold in Uttar Pradesh every month.
Note: Tractor registration figures are from June to September. FADA did not release figures for cities in October and November.
Demand for three-wheelers increased in smaller states: The lockdown has also had an impact on three-wheeler sales. Smaller states such as Tripura and Mizoram have seen a boom in this segment since May. Uttar Pradesh, Bihar, Gujarat, Tamil Nadu and Maharashtra recorded major declines on a year-on-year basis. These states sell the most three-wheelers.
Two-wheeler and four-wheeler segments fall: Since February, the two-wheeler and four-wheeler segments have seen a boom in sales for the last 3 months. However, both these segments are far behind in comparison to last year. Private vehicle sales stood at 1,95,665 units in September, up 9.81%. In September 2019, 1,78,189 units were sold. This is the only month when the private vehicle segment of the four-wheeler grew.
In February, the two-wheeler and commercial vehicle segment saw an increase, but after that the figures fell throughout the year. However, in November the private vehicle segment has shown a growth of 4.17% based on year-on-year figures.
The festive season also could not give relief: The year-long recession-hit auto segment had high expectations from the festive season, but there was no respite here either. The 42-day festive season in the country declined by 4.74% on a year-on-year basis. However, the private vehicle and tractor segment continued to grow during this period. The two-wheeler, three-wheeler and commercial vehicle segments saw major declines.
