Retail auto sales continued to recover in India, albeit at a slower pace, in August 2020, as the economy began to open up from a series of localised and national lockdowns which were imposed in the aftermath of the coronavirus outbreak.
Vehicle registrations—a measure of sales at dealerships—rose 4% month-on-month but fell 27.5% over the year-ago period to 11.79 lakh units last month, according to data complied by BloombergQuint from the website of the Ministry of Road Transport and Highways.
The government recently announced “Unlock 4.0”—or measures to open up the economy—with restrictions till Sept. 30. Monthly sales have also been impacted by localised lockdowns aimed at containing the pandemic.
Passenger Vehicles
Car sales continued to rise in August 2020 but are yet to get back to the pre-pandemic levels. They increased 14.1% sequentially but remained 8.1% lower year-on-year. To be sure, sales in August 2019 were on a low base.
Two Wheelers
Two-wheeler sales rose 2.7 percent sequentially in August and were well below pre-Covid-19 levels. Sales declined by nearly 29.4% on year-on-year basis. Hero MotoCorp Ltd. witnessed a decline in sales on sequential basis while others like Bajaj Auto Ltd., TVS Motor Co. Ltd., Honda Motorcycle and Scooter India Pvt. Ltd. and Suzuki Motorcycle India Pvt. Ltd. witnessed sequential growth.
Tractors
After outperforming the auto sector for the last few months, tractor sales moderated. Retail tractors sales declined 11.1% sequentially in August but rose 26.2% compared to a year ago due to good monsoon rainfall and demand for agricultural equipment. Agriculture was the only sector that grew in the first quarter of the ongoing financial year when all but essential businesses remained shut due to the lockdown.
Commercial Vehicles
Commercial vehicle sales continued to register sequential growth for the third straight month in August. Sales, however, more than halved compared to the year-ago period.
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