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9Vehicle registrations across categories declined year-on-year (YoY) in October, a trend quite different from what the original equipment manufacturers (OEMs) reported for their wholesales last week.
In the passenger vehicle (PV) category, registrations declined by 9 per cent YoY to 2,49,860 units during the month as against 2,73,980 units in October last year, the latest report by the Federation of Automobile Dealers Associations (FADA) said on Monday.
In the two-wheeler category, registrations declined by 27 per cent YoY to 10,41,682 units in October compared with 14,23,394 units in the corresponding month last year.
Vehicle registrations down 10% in September
However, on sequential basis (compared to September), the registrations of both PV and two-wheelers have gone up. While 10,16,977 units of two-wheelers were registered in September (up 2 per cent in October), PV registrations were recorded at 1,95,665 units (up 28 per cent in October).
In the commercial vehicle segment, the registrations declined by more than 30 per cent to 44,480 units last month as against 63,837 units in October 2019. But, sequentially, it has also gone up by 12 per cent from 39,600 units in September.
Three-wheeler registrations continue to decline and recorded 64 per cent YoY to 22,381 units in October as compared with 63,042 units in October last year. In September, there were registration of 24,060 units.
Tractor sales
Meanwhile, registration of tractors grew by more than 55 per cent YoY to 55,146 units during the month as compared with 35,456 units in October 2019. However, on sequential basis the registrations declined by 19 per cent from 68,564 units.
“October continues to see positive momentum on a monthly basis but on a yearly basis the negative slide continues to increase. The nine-day Navratri period witnessed robust vehicle registrations but could not save October from going into the red as compared to last year when both Navratri and Diwali were in the same month,” Vinkesh Gulati, President, FADA, said.
While new launches continued to be in demand in the passenger vehicle segment, entry-level motorcycles witnessed lean demand in the two-wheeler segment. With supply side mismatch, most passenger vehicle dealers ended with limited stock of high-selling items and odd variants, which did not attract much demand, he said. The lower discounts also played spoilsport.
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While small commercial vehicles are seeing robust demand due to local goods transportation back to pre-Covid levels, the medium and heavy commercial vehicles segment continued to bleed, he said.
“As we enter the last leg of festivals and with Covid getting into its third wave in many cities, there is a sense of cautiousness amongst customers. Due to the lockdown announced in a few European countries, procurement of spares will also be a cause of hindrance for smooth supply of vehicles in Indian markets,” Gulati said, adding that this would create a supply and demand mismatch, thus affecting passenger vehicle sales.
FADA once again cautions both OEMs and dealers to keep a check on vehicle inventory as, post festivals, demand may remain subdued. Since inventory levels are at their highest during this financial year, that may impact dealers’ financial health, thus leading to closures and job losses, he added.
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