SL vehicle registrations upon preference for private vehicles for fear of COVID – 19 infection

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Jul 13, 2020 (LBO) – In most categories there was a dramatic rebound to pre COVID19 levels, pent up demand, expectations of a stock out of dealer inventory and fears of infection from COVID19 in public transport hence a preference for private vehicles are all contributing towards the strong demand, a new report shows.


Data compiled by JB Securities equities research shows the finance share on most categories were lower than the normal monthly averages indicative that credit was not the driver of volumes, financial institutions may also be holding back credit due to a deterioration in asset quality and the need to build liquidity buffers.

Industry sources estimate that there is around 1 month of inventory remaining so the current momentum is expected to continue into July, it added.

  • Total vehicle registrations were 32,123 units in June almost double COVID19 affected May where the figure was 17,313 and even slightly higher than 31,715 units recorded 12 months ago.
  • Total Motor car registrations were 2,021 units in June up from 1,916 units in May and 1,580 units 12 months ago.
  • Brand new motor car registrations were 316 units in June up from 161 units in May and 222 units 12 months ago. Financing share was 51.6% in line with the normal monthly level.
  • Preowned motor car registrations were 1,705 units in June marginally down from 1,755 units in May but up from 1,358 units 12 months ago. Toyota accounted for a majority recording 1,244 units – Vitz 842, Premio 151 followed by Suzuki recording 212 units – Wagon R 74, Alto 77. Small cars accounted for 83.2% of units. Financing share was 48.2% in line with the normal monthly average.
  • Premium branded motor cars recorded 90 units in June up from 61 units in May and 66 units 12 months ago. New cars accounted for 43 units, Mercedez Benz recorded 35 units – E Class 13, C class 9. The pre-owned segment accounted for 47 units, MB recorded 26 units – E class 4, C class 15 followed by BMW recoding 10 units and Audi 11 units.
  • Electric cars recorded a mere 3 units in June like 3 units in May and down from 7 units 12 months ago.
  • SUVs recorded 800 units in June down from a high 902 units in May but up from a mere 289 recorded 12 months ago. Brand new accounted for 289 units, the balance 511 units were preowned. Small crossovers (<1,500cc) accounted for 744 units (93% of units). Toyota leads the pack recording 422 units – Raize 220 units, C HR 171 units followed by Honda with 62 units and Mitsubishi with 48 units. Financing share was 37.5% in line with normal monthly averages but lower than the figure for cars.
  • Hybrids recorded 182 units in June marginally lower than 193 units recorded in May and significantly lower than 340 units recorded 12 months ago, 24 months ago the figure was 3,638 units. Motor cars recorded 159 units – Suzuki accounting for 87 units followed by Toyota with 54 units. SUVs recorded 22 units.
  • Vans recorded 763 units in June significantly higher than the 481 units recorded in May and 480 units recorded 12 months ago. Mini vans (< 1,000cc) accounted for 693 units, the balance 93 units were mid-size vans. Preowned accounted for 758 units, brand new were a mere 5 units. Suzuki dominated the category recording 426 units followed by Nissan with 138 units and Toyota with 98 units. Financing share was 59.9% lower than the normal monthly average of 65%.
  • 3 wheelers recorded 1,098 units in June up from 767 units in May and 821 units 12 months ago. Bajaj accounted for 98% of units, the others have virtually exited the market. Financing share was 51.8% lower than the normal monthly average of closer to 70%.
  • 2 wheelers recorded 25,162 units in June significantly higher than 11,864 units in May and 21,416 units 12 months ago. Brand new recorded 24,772 units, the balance 390 units were preowned. Electric bikes were a mere 35 units. The Scooter category recorded 16,914 units – Honda is the leader accounting for 8,784 units (51.9%) followed by Yamaha with 3,185 units (18.8%) and TVS with 3,097 units (18.3%). The motor bike category recorded 8,248 units – Bajaj retained its leadership position with 2,707 units closely followed by Yamaha with 2,450 units. Financing share was 63.3% lower than the normal monthly average of 75%.
  • Pickup trucks recorded 128 units in June down from 188 units in May but up from 53 units 12 months ago. Brand new units accounted for 89 units, the balance 39 units are preowned. Toyota dominates accounting for 73 units followed by Mitsubishi with 39 units. Financing share was 39.8% in line with the normal monthly average.
  • Mini trucks recorded 91 units in June down from 109 units in May and 99 units 12 months ago. Brand new accounted for 71 units, the balance 20 units were preowned. Tata dominated the segment with a 73% share via the Ace model (Dimo batta). Finance share was 69% in line with the normal monthly average.
  • Light trucks recorded 252 units in June up from 180 units in May and 156 units 12 months ago. Brand new units were 218, the balance 34 units were preowned. Mahindra dominates the segment accounting for 191 units. Financing share at 77.4% was marginally below the normal monthly average of 84%.
  • Medium trucks recorded 293 units in June significantly higher than 98 units recorded in May and 168 units 12 months ago. Brand new accounted for 123 units, the balance 170 units were preowned. Isuzu dominates the segment accounting for 199 units. Financing share was 76.1%.
  • Heavy trucks recorded 83 units in June higher than 30 units in May and marginally higher than 81 units 12 months ago. Brand new accounted for 76 units, the balance 7 units are preowned. Tippers accounted for 11 units. Lanka Ashok Leyland claims 68.4% share followed by Tata with 27.6%. Financing share was 73.5% lower than the normal monthly average close to 80%.
  • Buses recorded 28 units in June marginally up from 22 units in May but down from 40 units 12 months ago. Brand new recorded 15 units and preowned 13 units. Financing share was 71.4%.
  • Hand tractors recorded 151 units in June significantly higher than the 56 units recorded in May and higher than 134 units recorded 12 months ago. Financing share was 56.3% in line with the normal monthly average.
  • Large tractors recorded 384 units in June higher than 312 units recorded in May and significantly higher than 182 units recorded 12 months ago. Tafe is the market leader accounting for 171 units followed by Mahindra with 90 units. Financing share was 76.3% lower than the normal monthly average which is above 80%.