Pandemic hits TN’s vehicle sales, July figures drop by 38 per cent

With the regional transport offices remaining shut during the first two phases of the lockdown in March, April months, the vehicle registration commenced only on May 18 and recorded registration of 32,840 units in May. In June, vehicle registration went up to 1,10,613 units even though year-on-year growth continued to be negative.

According to a report of the Emkay Global Financial Services Ltd, the sales volume of automobile companies for August is expected to pick up due to a ramp-up in production levels. It pointed out that July automobile wholesales improved on a sequential basis, supported by pent-up demand, better rural sentiment and improved dispatches following higher plant utilisation levels. However, volumes were lower than last year’s levels across segments, except for tractors. In Tamil Nadu, the agricultural tractor registration continues to witness positive growth with a 58 per cent increase to 2,812 units in July 2020 from 1,783 in the same period last year. Two-wheeler, which constitutes the bulk of registration in the State, continues to witness a steep fall of 55 per cent to 95,902 units in July 2020 from 1,49,074 units in July 2019. In June this year, the State has witnessed registration of 97,381 units of two-wheelers.

Meanwhile, passenger vehicle registrations were down 70 per cent to 8,834 units in July 2020, from 15,019 units in 2019. Three-wheeler and commercial vehicle registrations too continued to see a sharp decline.

A senior official of the Transport Commissionerate said the rise in the vehicle registration in June and July does not signify a revival in consumer demand. “The registration numbers are way behind last year’s and our revenues have taken a hit,” the official said, adding that assuming no further intense lockdown and continued reopening measures, it is anticipated that vehicle registration will see somewhat increase in the coming months in private vehicle segment though not to the levels of last year.