FADA Releases May’21 Vehicle Retail Data

    FADA Releases May’21 Vehicle Retail Data

    Total Vehicle Retails for the month of May’21 fell by -54.79% MoM and -70.69% when compared to May’19. All categories on MoM saw bloodbath as 2W, 3W, PV, Tractor and CV fell by -53%, -76,  -59%, -57% and -66% respectively.

    The first 9 days of June saw a better start than expected due to pent up demand. At this pace June’21 may result in almost equivalent sales when compared to June’20.

    Overall demand recovery to be slow as rural markets continue to struggle with post covid effects.

    FADA thanks all OEMs which have announced financial package for Auto Dealers and once again appeals to all those, who are yet to announce a similar financial package like last year.

    FADA also requests the Prime Minister to instruct RBI to grant moratorium for Auto Dealers and release guidelines for relaxation of loan re-payment equivalent to number of days of lockdown each state has been declaring.

    The Federation of Automobile Dealers Associations (FADA) today 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.

    Since the current lockdown has already lasted well over 30-45 days and is still continuing in South India, revenue for most of the Dealers are negligible as there was minimal sales. Due to this, dealers will not be able to repay their loan tranche payment which is getting due. This will ultimately lead towards default. Since there are no guidelines, extension of tranche is considered as restructuring of loan. This will ultimately have a negative impact on Dealers credit score as their CIBIL rating will get impacted.

    Near Term Outlook

    The 1st 9 days of June has seen better than expected retails due to pent up demand which was there in the system when states started implementing lockdown. If the trend continues, we may see almost similar sales when compared to June’20 last year.

    The monsoons arrived in India almost on time. If Met predictions are to be believed, normal and evenly spread rains may bring an early respite for the rural economy thus pushing demand for vehicles faster than expected.

    It may be prudent to say that India may not witness a V – shaped recovery unlike last time. FADA hence continues to remain guarded in its optimism on overall industry recovery for the fiscal FY21-22.

    Inventory at the end of May’21

    Average inventory for Passenger Vehicles ranges from 20-25 days

    – Average inventory for Two – Wheelers ranges from 25-30 days

    Chart showing Vehicle Retail Data

    All India Vehicle Retail Data for May’21

    CATEGORY MAY’21 MAY’19 % Change w.r.t MAY’19 APR’21 MoM %
    2W 4,10,757 14,20,442 -71.08% 8,65,134 -52.52%
    3W 5,215 51,428 -89.86% 21,636 -75.90%
    PV 85,733 2,36,157 -63.70% 2,08,883 -58.96%
    TRAC 16,616 39,417 -57.85% 38,285 -56.60%
    CV 17,534 75,122 -76.66% 51,436 -65.91%
    LCV 9,411 43,255 -78.24% 28,511 -66.99%
    MCV 915 5,075 -81.97% 3,547 -74.20%
    HCV 6,233 23,839 -73.85% 16,062 -61.19%
    Others 975 2,953 -66.98% 3,316 -70.60%
    Total 5,35,855 18,22,566 -70.60% 11,85,374 -54.79%

    FADA Research

    About FADA India

    Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~4 million people at dealerships and service centres.

    FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.

    OEM wise Market Share Data for the Month of May’21 with MoM comparison

    Two-Wheeler (2W)
    Two-Wheeler OEM MAY’21 Market Share (%), MAY’21 APR’21 Market Share (%), APR’21
    HERO MOTOCORP LTD 1,92,968 46.98% 2,99,576 34.63%
    HONDA MOTORCYCLE AND SCOOTER INDIA (P) LTD 78,343 19.07% 2,17,832 25.18%
    TVS MOTOR COMPANY LTD 57,652 14.04% 1,28,365 14.84%
    BAJAJ AUTO LTD 45,550 11.09% 98,041 11.33%
    ROYAL-ENFIELD (UNIT OF EICHER LTD) 14,942 3.64% 42,120 4.87%
    SUZUKI MOTORCYCLE INDIA PVT LTD 9,468 2.31% 33,699 3.90%
    INDIA YAMAHA MOTOR PVT LTD 9,182 2.24% 34,817 4.02%
    PIAGGIO VEHICLES PVT LTD 667 0.16% 3,262 0.38%
    CLASSIC LEGENDS PVT LTD 643 0.16% 2,036 0.24%
    BMW INDIA PVT LTD 144 0.04% 230 0.03%
    INDIA KAWASAKI MOTORS PVT LTD 55 0.01% 97 0.01%
    ADISHWAR AUTO RIDE INDIA PVT LTD 41 0.01% 141 0.02%
    H-D MOTOR COMPANY INDIA PVT LTD 4 0.00% 19 0.00%
    DUCATI INDIA PVT LTD 1 0.00% 14 0.00%
    DUCATI MOTOR HOLDING S.P.A 0.00% 0.00%
    Others including EV 1,074 0.26% 4,848 0.56%
    Total 4,10,757 100.00% 8,65,134 100.00%


    Source: FADA Research

    Three-Wheeler (3W)
    Three-Wheeler OEM MAY’21 Market Share (%), MAY’21 APR’21 Market Share (%), APR’21
    BAJAJ AUTO LTD 1872 35.90% 7,741 35.78%
    PIAGGIO VEHICLES PVT LTD 664 12.73% 3,380 15.62%
    MAHINDRA & MAHINDRA LIMITED 379 7.27% 1,356 6.27%
    ATUL AUTO LTD 286 5.48% 833 3.85%
    YC ELECTRIC VEHICLE 170 3.26% 758 3.50%
    TVS MOTOR COMPANY LTD 130 2.49% 493 2.28%
    Others including EV 1,592 30.53% 6,623 30.61%
    Total 5,215 100.00% 21,636 100.00%



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