Chennai: The Federation of Automobile Dealers Associations (FADA) has released the monthly vehicle registration data for May.
Commenting on how May performed, FADA president Ashish Harsharaj Kale said, “for the first time in history, the month of April witnessed zero retails. While lockdown was gradually relaxed beginning May, auto dealerships and workshops opened for the first time after 40 days in many cities.”
At the end of May, out of 26,500 outlets about 60 per cent showrooms and 80 per cent workshops were operational across the country. May registrations are hence not indicative of the demand situation as the lockdown still continued in many parts. he said.
First 10 days of June witnesses extremely low demand despite most dealerships which are now open for business. Weak consumer confidence especially in urban areas continue to haunt as customers stay away from concluding their purchase due to threat of community spread and return of complete lockdown persists.
According to FADA, with 7.6 per cent of GDP, a workforce of several millions and a multiplier effect for many supporting sectors, auto Industry can be the driving force in boosting consumer confidence and improving sentiment, if supported with short term stimulus to revive demand as return to normalcy seems very difficult till the festive season.
“Mobility still being a necessity and not luxury in a growing country like ours, demand stimulus along with credit support can bring auto sales back in positive zone within 30-60 days and help shore up consumer confidence.”
Luxury launch
BMW has announced the launch of BMW X6 launched in India. “Expressive and dominant from every angle, head-turning looks of a coupe with distinctive BMW āIconic Glowā kidney grille, two authoritative than ever design variants: the new xLine and MĀ Sport,” said a press note.
It added: “Customise as per your style: Thousands of features, equipment and packages combinations to suit individual needs.”