: Auto registrations witness double digit fall in April: FADA #FinanceIndia #StockMarketNEWS New Delhi, May 10 (KNN) Auto Registrations for the month of April witnessed double digit fall to the tune

@StockMarketNEWS Mon 10 May, 2021

Posted in: #FinanceIndia #StockMarketNEWS

Auto registrations witness double digit fall in April: FADA #FinanceIndia #StockMarketNEWS
New Delhi, May 10 (KNN) Auto Registrations for the month of April witnessed double digit fall to the tune of -28 per cent MoM, as most of the Indian states started going under lockdown (partial as well as full) beginning April 5th onwards, said the Federation of Automobile Dealers Association (FADA) said on Monday.

It said that the spread started with Maharashtra followed by Chhattisgarh, Delhi, Rajasthan and other Indian States following the suit. Not surprisingly, all categories hence closed the month in red with 2W down by -28 per cent, 3W by -43 per cent, PV by -25 per cent, Tractors by -45 per cent and CV by -24 per cent respectively on a MoM basis.

Unlike last year, the lockdown this time around has been imposed by State Governments and not the Central. Due to this, there have been no relief announcements which have come out till now either by the Centre or RBI and Auto OEMs, FADA added.

Commenting on how April’21 performed, FADA president, Vinkesh Gulati said, “India is currently facing one of its toughest times with the 2nd wave of covid creating havoc in everyone’s life. This time, the spread is not only limited to urban markets but has also taken rural India in its grasp.

FADA humbly requests Auto OEMs (our Principals) to handhold their dealers the way they did last year during the 1st phase of pandemic as situation is very grim in most of the states and Dealer Principals as well as their teams are fighting for their survival from COVID. FADA also requests OEMs to not burden dealers with high billings in all the states where lockdown has been announced, Gulati added.

According to FADA, the sale of commercial vehicles, as volumes declined by a whopping 23.65 per cent m-o-m to 51,436 units while the registration of two-wheelers also fell by 27.6 per cent m-o-m to 865,134 units in April.

Overall vehicle sales declined by 28.15 per cent to 1,185,374 units in April.

Meanwhile, FADA also requested the government to come out with a financial package, the way they did last year.

We also request RBI to come out with guidelines/notifications for relaxation of loan repayment equivalent to the tune of number of days of lockdown each state has announced,” FADA president said.

“The first nine days of May have seen extremely lean sales due to lockdown announced by the majority of states. Lockdown also means dealership outlets will have to remain closed thus meaning zero sales. Considering the rising number of cases, one can expect the peak in terms of infections for India on a whole could be at least a fortnight away," FADA said in a statement.