text: FADA: PV retail sales decline 7% at 1,78,513 units in August 2020: FADA, Auto News, ET Auto
  Share of two-wheelers in Indian auto market dips to a decadal low5 hrs ago
  PV retail sales decline 7% at 1,78,513 units in August 2020: FADA
  Total vehicle registrations at RTOs fell by 26.81% to 11,88,087 units over August last year as the industry continues to battle the pandemic.
  Updated: September 09, 2020, 15:46 IST
  PV retail sales decline 7% at 1,78,513 units in August 2020: FADA(Representational Image)
  New Delhi: With the ongoing festive season and easing of supply chains, passenger vehicle (PV) registrations saw a year-on-year drop of 7.12% to 1,78,513 units in August 2020, as per the data shared by the Federation of Automobile Dealers Association (FADA) based on VAHAN.
  Total vehicle registrations at regional transport offices (RTOs), which are proxies for sales, fell by 26.81% to 11,88,087 units over August last year as the industry continues to battle the pandemic, according to a report of the dealer's lobby.
  With the start of the festival season and the government's continued effort to open up India, August saw better numbers than in the immediate previous months. August also saw an arrest in decline; pullback efforts on all fronts were also visible. On YoY, all categories, except tractors, continued to fall, though, at a slower pace, FADA informed.
  Vinkesh Gulati, President, FADA, said, "Passenger vehicles after five months saw the decline falling to a single digit. The customers who were sitting on the fence finally concluded their purchase during the ongoing festivals of Janmashtami and Ganesh Chaturthi. Entry-level passenger vehicles were in high demand as personal mobility is being preferred with the current pandemic showing no signs of reduction.
  Gulati further noted, "Apart from the rural market, which has been showing revival signs, the urban centres showed initial signs of demand pullback. With the government's priority in spending towards rural development and agriculture, coupled with good monsoon and a healthy sowing season, tractor, small commercial vehicles and entry-level passenger vehicles positively impacted August sales."
  Barring the tractor segment, all other segments remain in the red.
  All India Vehicle Registration Data for August'20:
  Category Aug' 2020 Aug' 2019 Y-o-Y%
  PV 1,78,513 1,92,189
  2W 8,98,775
  12,60,722
  CV 26,536 62,270 -57.39%
  3W 16,857
  Tractor 67,406 52,744 27.80%
  Total 11,88,087 16,23,218 -26.81%
  *Source: FADA Research
  The decrease in retail sales was the highest for three-wheelers and commercial vehicles segments witnessing a year-on-year decline of 69.51% and 57.39% respectively in August 2020.
  Two-wheelers, on the other hand, reported a drop of 28.71% to 8,98,775 units this month, down from 12,60,722 units in the same month last year.
  About the outlook for the next month, FADA President said, "September brings with itself, the inauspicious 16 days of the Shraadh period. This coupled with 30 days of Adhik Maas (an extra month in the Hindu calendar that is inserted to keep the lunar and solar calendars aligned) is considered inauspicious in North, East and West India when no high-value transactions take place."
  "The moratorium period from banks ended on August 31. During this period, if NPA's are not too high, and the recovery rate is even neutral to positive, banks and NBFCs may return with aggressive financing schemes for auto loans thus leading to a strong demand pullback," he said.
  "While OEM's are dispatching vehicles to dealers for stocking-up inventory for the festival season, retail sales are still at 70-75% levels despite the low base of last year. FADA advises extreme caution to all OEMs and our dealer fraternity to avoid excessive inventory build-up thus leading to unmanageable interest cost which could further result in dealership closures", Gulati added.