Retail sales of two-wheelers fell by a whopping 27 per cent in October even as most manufacturers reported a record rise in factory dispatches earlier this month. According to latest data issued by FADA, vehicle registration in October 2020 came down to 10,41,682 units from 14,23,394 units in October 2019.
Just for reference, India's largest two-wheeler maker Hero MotorCorp had alone sold (wholesales) 7,91,137 units last month while total domestic sales of the top seven OEMs was recorded at around 20 lakh units.
FADA President, Vinkesh Gulati said, “October continues to see positive momentum on monthly basis but on a yearly basis the negative slide continues to increase. The 9-day Navratri period witnessed robust vehicle registrations but could not save October from going in the red as compared to last year when both Navratri and Diwali were in the same month."
"While new launches continued to be in demand in the passenger vehicle segment, entry level motorcycles witnessed a lean demand in the two-wheeler segment. With supply side mismatch, most passenger vehicle dealers ended with limited stock of high selling items and odd variants which did not attract much demand. This, coupled with lower discounts compared to last year's festivals, also played a spoilsport."
Passenger vehicle registrations fell by 9 per cent to 2,49,860 units in October as against 2,73,980 units in the same month a year ago. According to estimates, passenger vehicle wholesale sales are expected to be around 3.5 lakh units in October.
FADA numbers do not have figures from Andhra Pradesh, Arunachal Pradesh, Madhya Pradesh, Lakshwadeep and Telangana as all these states/UTs are not yet on Vahan 4.
"As we enter the last leg of festivals and with COVID-19 getting into its 3rd wave in many cities, there is a sense of cautiousness amongst customers," Fada said.
Due to the lockdown announced in a few European countries, procurement of spares will also be a cause of hindrance for smooth supply of vehicles in Indian markets. This will create a supply and demand mismatch thus affecting passenger vehicle sales.
"FADA once again cautions both OEMs and dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued. Since inventory levels are at their highest during this financial year, it may impact dealers' financial health thus leading to closures and job losses," the association said.