Automobile Retail Sales Grow First Time in FY21; 2-Wheelers Up by 12%

Automobile retail sales December 2020 – Last month of the year saw sales of 1,51,392 more units of two-wheelers as compared to last December…

From the usual factory dispatch figures, there has been a big change in the way monthly vehicle sales are revealed. Federation of Automobile Dealers Associations (FADA) now shares vehicle registration data – which is a much more reliable data pertaining to any particular month.

These vehicle registration numbers are compiled from Vahan dashboard and are in collaboration with Ministry of Road Transport & Highways. It reflects data from 1270 RTOs across India out of the total 1477 RTOs. It excludes few areas like Andhra Pradesh, Madhya Pradesh, Lakhwadeep and Telangana as they are still not on Vahan 4.

December 2020 Numbers

In what comes as a big respite for manufacturers, December 2020 turned out to be the first month of the financial year 2020-21 which reported positive growth in retail sales in automobile numbers. Specifically, 2-wheeler sales were up by 11.88 percent. Almost all prominent makers witnessed better numbers in the month including Hero, Bajaj, TVS and others.

automobile retail sales

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As compared to 12,73,318 2-wheelers registered in December 2019, as many as 14,24,620 units were sold in December 2020 – a number greater by 1,51,392.

December 2019December 2020Growth

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FADA lists spill-over demand continuing from the festive season and pre-buying due to price hike announcement by OEMs as the two major reasons for the hike in sales. However, it expects temporary ‘blip’ in this demand due to the recent price increments. Average inventory for two-wheelers at dealerships ranges from 30-35 days.