The Federation of Automobile Dealers Associations (FADA) on Thursday released Monthly Vehicle Retail Data for May’21.
Unlike other months, we can’t represent a YoY comparison since India was under complete lockdown in May 2020. Hence, all comparisons for this month have been done with April’21 (MoM) and 2 year back with May’19.
Commenting on how May’21 performed, FADA President, Mr. Vinkesh Gulati said, “The 2nd wave of covid has left the entire country devastated as there may not be a single household which did not get affected. Apart from urban markets, this time, even rural areas were badly hit. May saw continued lockdown in most of the states.
Not surprisingly, Auto Retail for the month witnessed bloodbath as sales fell by -55% on MoM basis. Similarly, all categories of vehicles fell by a huge degree with 2W falling by -53%, 3W by -76%, PV by -59%, Tractors by -57% and CV by -66% respectively. Auto Retail fraternity is in dire need of support. While a handful of OEMs (Tata Motors – CV, Renault, Bharat Benz and HMSI) have announced financial help to their channel partners, others are yet to do so. Hence, FADA humbly requests all those OEMs which have still not announced any financial assistance to kindly do it urgently.
FADA also appeals to the Hon’ble Prime Minister that instead of restructuring, banks should allow a moratorium of 90 days to all categories of dealers without keeping a turnover limit. This is required as Auto Retail Trade works on the principle where dealers get funded from Financial Institutes in terms of inventory funding for a period of 30-45 days (depending from bank to bank) to purchase vehicles from Auto OEMs.