The Federation of Automobile Dealers Associations (FADA) today released Monthly Vehicle Registration Data for March 2021. March auto registrations have continued to fall by -28.64% YoY but grew 10.05% MoM. Tractors and Passenger Vehicles sustained its healthy momentum by growing 29.21% and 28.39% YoY on a low base, transition from BS-4 to BS-6 and India going under lockdown last year. On YoY basis, 2W, 3W and CV unrelentingly fell by -35.26%, -50.72% and -42.20% respectively. On MoM basis 2W, 3W, CV, PV and Trac grew by 9.54%, 14.15%, 14,15%, 10,11% and 12.60%, respectively.
According to the latest data researched by FADA, Hero MotoCorp continues to keep most of the market share, however, in comparison to March 2020, its share has slipped from 42.71% to 33.17%. Honda 2Wheelers has gone up from 21.42% to 26.19%, TVS is up from 13.87% to 14.92%, Bajaj Auto is down from 12.08% to 11.49%, and Royal Enfield is up from 3.03% to 5.03%.
According to Pew Research, financial woes brought by Covid-19 have pushed about 32 million Indians out of the middle class, undoing years of economic gains. This had its impact on 2-wheelers as it saw one of its steepest de-growth in the last few months. This coupled with high fuel prices and price increase acted as a double whammy. It not only created havoc in entry-level customers’ minds but also kept them away from visiting showrooms.
The second wave of Covid is not only spreading faster but stands to destabilise the growth which India has been able to achieve in the last few months. FADA states that any lockdown at this point will severely hamper the momentum which is getting built for the Auto Industry to come out of the woods.
Increase of Covid and fear amongst consumers with last year’s sight in mind has started keeping them away from making a high ticket purchase. The effects of the same can be seen in the 2-Wheeler category where inquiry levels are low. This coupled with semiconductor shortage will continue to hamper not only Passenger Vehicles but also Two Wheelers as ABS shortage is currently ringing alarm bells.
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