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Vehicle registration up 4 per cent in October on back of festival sales, say dealers

Our Bureau New Delhi | Updated on November 19, 2019

Registration of two-wheelers rode up 5 per cent year-on-year, while passenger vehicles sales grew 11 per cent

 

Vehicle registrations finally showed positive momentum in October, with the festivals of Navratri/ Dussehra and Diwali falling in the same month, the Federation of Automobile Dealers’ Associations (FADA) said on Tuesday.

Vehicle registrations rose by 4 per cent on a year-on-year (YoY) basis during the month, it said. The two-wheeler segment registered 5 per cent growth, while the three-wheeler segment was up 4 per cent and retail sales in the passenger vehicles (PV) segment grew 11 per cent. However, registrations in the commercial vehicle (CV) segment were down 23 per cent YoY.

In terms of numbers, two-wheeler registrations grew to 13,34,941 units in October, as compared with 12,70,261 units in the corresponding month last year. Similarly, registrations in the PV segment grew to 2,48,036 units during the month, as against 2,23,498 units in the same month of the previous year. The CV segment reported registration of 67,060 units in October, as compared with 87,618 units in the same month last year.

“FADA specially appreciates the actions taken by two-wheeler manufacturers for delivering on their commitment, of reducing stock with Festival Retail Growth. Although not at FADA recommended levels of 21 days, the two-wheeler inventory has reduced from an alarming level. PV inventory, already at reasonable levels, has further reduced and is now at the recommended levels, with all our principals taking strong and positive steps towards stock reduction," Ashish Harsharaj Kale, President, FADA, said.

Inventory in the CV segment has also reduced, although with retail remaining weak, further wholesale regulation was required to achieve inventory levels of 21 days, as recommended by the association, he said.

According to the association, the average inventory for PVs ranged from 25–30 days in October (as compared to 30-35 days in September), for two-wheeler from 35–40 days (60-65 days in September) and for CVs from 40–45 days (50-55 days in September).

However, FADA remains cautious for the near and mid-term, post the festive season, as the transition to BS-VI approaches and with rural demand yet to pick up due to an extended and excessive monsoon. Kale added that the business appetite of banks and NBFCs was seen to be growing and would aid in demand recovery in the coming months.

Published on November 19, 2019

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