Nirmal Bang: August 2020 Auto Sales Sees Improvement In Vehicle Registrations Aided By Festive Demand And Unlock

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Nirmal Bang Report.The Federation of Automobile Dealers Associations (FADA) released monthly vehicle registration data for August 2020.Below are the key takeaways:Vehicle registrations for August 2020 showed sequential improvement on account of increase in mobility needs due to continued unlocking of India and higher festive demand (as highlighted in our dealer checks).However, vehicle registrations continued to remain low on YoY basis for all the segments, barring Tractors.Commercial vehicles and three-wheelers continued to remain the worst affected segments, with 57.4% YoY and 69.5% YoY decline, respectively.Commercial vehicles, especially medium and heavy commercial vehicles are still suffering from higher lead times with financers, stricter CIBIL checks (affecting customer finance) and an increase in cost of acquisition (leading to viability issues).Passenger vehicles arrested YoY decline to single digit (7.1% YoY) on account of higher demand for entry level passenger vehicles amid shift in preference towards personal mobility.Tractors, small commercial vehicles and entry level passenger car registrations continued to remain strong amid rural revival on the back of higher government spends, good monsoon and healthy kharif sowing season.However, two-wheeler registrations witnessed only a marginal improvement sequentially (2.8% month on month).We believe that the buzz of goods and sercive tax reduction on two-wheelers would have likely affected sales in the last week of August..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint. .Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Nirmal Bang: August 2020 Auto Sales Sees Improvement In Vehicle Registrations Aided By Festive Demand And Unlock

Nirmal Bang: August 2020 Auto Sales Sees Improvement In Vehicle Registrations Aided By Festive Demand And Unlock

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