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As per the FADA report; Vehicle Registrations registered a mammoth drop of -88.87% in May’20 v/s May’19.
Commercial Vehicle Industry was hit the hardest and CV registrations saw a YoY degrowth of -96.63%.
Registrations of 3 Wheelers dropped by -96.34% in May’20 when compared to May’19.
Owing to good monsoons prediction this year and coupled with government backed agro policies; Tractor Industry fared better than other segments. It had the lowest YoY degrowth in terms of registrations and fell by -75.58%.
Passenger Vehicle Registrations dipped by -86.97% YoY.
The bigger concern here is that the vehicle dispatches were 36,576 units in May’20 (source). We anticipated that the registration figures were much better as dealers were reeling with heavy stocks. However; the registration figures isn’t encouraging. And the dispatches data project that dealers will still be carrying excess stocks at their end.