As per Federation of Automobile Dealers Associations (FADA), compared to the same month last year, total car sales last month have declined by 1.17%
According to FADA’s data, a total of 2,26,271 four-wheelers were sold in India in February 2020, which is lower compared to February 2019 (2,28,959 units). The state-wise sales data shows that Uttar Pradesh has had the most car sales, with 28,136 units registered in February 2020, clocking a 3.66% increment on a Year-on-Year basis.
Car sales in February 2020 have shown a decline compared to last year
According to FADA, there are several factors contributing to the declining automobile sales, the biggest of which is the slow sales of BSIV cars. With supreme court has out-ruled the extension of BSVI deadline and BSIV-compliant cars struggling to find takers, dealerships are sustaining heavy potential losses. Banks and Non-Banking Financial Companies (NFBCs) are now more careful while offering loans to customers. RTOs across the country have declared cutoff dates for permanent registration, thus adding to the challenge. The latest threat to the market is the Coronavirus (Covid-19) pandemic, which has disrupted supply chains as well as consumer habits, not only in India but all across the globe.
Indian Automobile Industry, as a whole, is in dire need of rescue
FADA states that the sales figures for March 2020 are expected to be worse, unless the government takes appropriate steps. The association has already requested for relief packages for the Auto industry, like GST waivers, etc., to help revive the market.