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).

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.”