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The overall vehicles market in May was down, but it doesn’t seem to have affected the vehicle registration numbers. States with highest vehicle registrations were Uttar Pradesh (2,81,175), Maharashtra (1,99,509) and Tamil Nadu (158,433), said to the Federation of Automobile Dealers Associations (FADA).
In the two-wheeler category too, these three States topped with highest registrations — Uttar Pradesh registering 2,36,713, Maharashtra with 1,51,265 and Tamil Nadu 1,31,092. In the passenger-vehicle category, the States with highest registrations were Uttar Pradesh (34,249), Maharashtra (31,871) and Gujarat (21,929).
Similarly, in the commercial-vehicle category, the States with highest registrations were Maharashtra (7,853), Tamil Nadu (6,676) and Gujarat (4,923), FADA’s monthly report showed.
Negative outlook
Despite the high numbers, the current situation is worrisome.
De-growth continues in the second month of the fiscal as all auto categories see lower year-on-year (YoY) sales, and the overall consumer sentiment continues to be in ‘neutral’ to ‘bad’ category, it said.
“It should also be noted that May last year had a very high base, and had witnessed the second-highest registrations on a monthly basis in the last fiscal,” Ashish Harsharaj Kale, President, FADA, said.
He also said that dealer liquidity continues to be negative and extremely tight. “The CRR reduction by the RBI has not seen a reduction in interest rates at the retail level, but the change in monetary stance from neutral to accommodative will definitely act as a facilitator for the banking and financing system moving back to a positive approach with regards to the auto retails sector,” he said.
FADA is hopeful of consumer sentiment moving out of the negative territory in the next 8-10 weeks, he added.
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