Automotive sales improve in August 2020 by 3.98 percent month-on-month

    The Federation of Automobile Dealers Associations has reported 11,88,087 vehicles were registered in the month.

    Published On Sep 10, 2020 04:20:00 PM


    Automotive sales improve in August 2020 by 3.98 percent month-on-month

    August 2020 sales numbers, as reported by the Federation of Automobile Dealers Associations (FADA), shows sales have improved over July 2020 – 11,88,087 vehicles were registered all over India, which is a 3.98 percent rise compared to retail sales in the previous month. However, this figure is still 26.81 percent lower than the 16,23,218 units retailed in August 2019.

    • Passenger vehicle sales shows improvement but still down 7.12 percent year-on-year
    • Entry level passenger cars helped improve August 2020 sales

    Demand returns slowly in urban areas

    Based on data provided by FADA, August 2020 is the first month since the lockdowns due to the COVID-19 pandemic to see a decent demand for new cars in urban areas. FADA President, Vinkesh Gulati, was quoted saying, “Apart from the rural market, which was showing revival signs until now, urban centres for the first time showed initial signs of demand pullback.

    Vehicle sales August 2020
    CategoryAugust 2020August 2019Change YoYJuly 2020Change MoM
    Two wheelers8,98,77512,60,722-28.71%8,74,6382.76%
    Three wheelers16,85755,293-69.51%15,13211.39%
    Commercial vehicles26,53662,270-57.39%19,29337.54%
    Passenger vehicles1,78,5131,92,189-7.12%1,57,37313.43%

    Decline in sales less than before

    From the table above, one can see that the rate of decline in most vehicle segments is slowly retarding. August 2020 figures, are an improvement over July 2020, but that is to be expected, considering the festive season has begun.

    Talking about the improvement in month-on-month sales, Gulati said, “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.”

    Carmakers with small cars, gain market share

    In August 2020, Maruti Suzuki, Hyundai and Tata Motors, the three carmakers with the highest registrations, all gained market share. These three brands have more than a few budget and entry-level models, which, according to FADA, has been a volume driver.

    Meanwhile, Mahindra, Honda Cars India and Toyota Kirloskar have all lost a significant amount of ground compared to where they were placed last year. The table below has the details.

    Top 10 passenger vehicle sales in August 2020 by carmaker
    ManufacturerAugust 2020Market share August 2020August 2019Market share August 2019
    Maruti Suzuki88,80149.74%89,87746.76%

    Also see:

    Passenger vehicle sales up 20 percent in August 2020

    Passenger vehicles at back of queue for government relief

    Two-wheeler sales increase in August 2020

    Kenichi Ayukawa appointed as SIAM president

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