Vehicle registrations decline by 70% in April due to Covid-19

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A report on Tuesday claimed that vehicle registration in the fourth month of 2020 plunged by 70 percent in comparison to the year ago period. This comes in the wake of Coronavirus caused lockdown. The nation-wide Lockdown is adopted as a measure to contain the spread of the China originated virus. Most of the businesses remain shut during the month amid the lockdown leading to an economic fallout.

Vehicle registrations in April were as low as 21,000 units for the passenger vehicles and 19,000 units for commercial vehicles.The number of tractors that got registered in April stood at 5,000 units. From the government’s Vahan database it is found that 3.14 lakh units for two-wheelers and 10,000 units of three-wheelers were registered.Passenger and commercial vehicle makers, two- and three-wheelers and OEMs recorded close to zero sales in the domestic market during April.Mahindra & Mahindra and Escorts registered domestic volumes of 4,716 units and 613 units, respectively.This record in volumes was reduced by 83 per cent and 88 per cent on year-on-year-basis.

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Emkay Global Financial Services said in its report on the auto industry that the Wholesale volumes steeped lower than registrations as dealers have been focusing on clearing existing inventories and getting rid off the prior stock before buying New Units due to lower demands. Moreover, the original equipment makers also called as OEMs are still due to ramp-up operations.

The ramp-up of resuming operations in several plants for OEMs is dependant on several factors. Supplies from ancillaries and labour availability are two of them.

Gradually commerce activities are being re organised after due permissions from the authorities in green and orange zones. However, In Red zones, most dealers expect to commence operations from May 18.

 

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