Vehicle registration plummets by 42% in June — tractors to lead the road to recovery
- The overall vehicle registration declined by 42% in June, in comparison to the same period last year.
- The Tractor registration saw a growth of 10.86% supported by the healthy Rabi crop procurement and timely arrival of monsoons.
- The personal vehicle and the two-wheeler segment were also among the least affected due to the unavailability of public vehicles and increased consciousness towards health and hygiene.
While June registrations numbers are a lot better than May digits, it is still not Indicative of the actual demand situation as lockdown woes continue in some parts of the country and supply side is far from its complete potential, FADA added.
Faster recovery in tractor and personal vehicle segment
On a Year-on-Year basis, all vehicle categories registered unprecedented de-growth except the tractor registration, which saw a growth of 10.86% supported by the healthy Rabi crop procurement and timely arrival of monsoons. The personal vehicle segment and the two-wheeler segment were also amongst the least affected due to the unavailability of public vehicles and increased consciousness towards health and hygiene.
Assuming that there will be no further prolonged lockdowns, FADA projected that in the coming months, the vehicle registrations number will see speedy recovery, with further green shoots of demand in newer geographies and segments. However, normalcy in demand is unlikely before the festive sea.
Despite the positive trends in the rural markets, the annual outlook currently continues to be grim with projected sales expected to decline around 15-35% across various segments in FY21, except for the Tractor segment, which looks set to clock a positive annual growth, FADA said.
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