Automobile dealers’ association FADA today released vehicle registration numbers across categories of vehicles in the month of May 2021. The federation states that, unlike other months, it can not represent a YoY comparison since India was under complete lockdown in May 2020. Hence, all comparisons for this month have been done with April 2021 (MoM) and two years back with May 2019. Auto retail for the month witnessed a steep drop as sales fell by 55% on MoM basis. Two-wheeler sales were down 53 percent.
The drop in sales owing to coronavirus-related lockdown has brought about changes to the manufacturer’s market share as well. For example, Hero MotoCorp’s market share that stood at 34.63 percent in April 2021 increased to 46.98 percent in May 2021.
Honda Motorcycle & Scooter India’s market share shrunk from 25.18 percent to 19.07 percent from April to May 2021, respectively. Similarly, Bajaj Auto that stood at 11.33 percent was down at 11.09 percent.
In a press statement, FADA further states that the first nine days of June have seen better than expected retails due to pent-up demand which was there in the system when states started implementing lockdown. If the trend continues, almost similar sales when compared to June 2020 last year can be achieved.
The monsoons arrived in India almost on time. If Met predictions are to be believed, normal and evenly spread rains may bring an early respite for the rural economy thus pushing demand for vehicles faster than expected.
Inventory at the end of May 2021
Average inventory for Passenger Vehicles ranges from 20-25 days
Average inventory for Two–Wheelers ranges from 25-30 days