Vehicle registrations sputter, slide 7% on poor sentiment

Representational image. File

Representational image. File   | Photo Credit: V. V. Krishnan

Lack of demand boosters in Budget impacts retail auto sector in January: FADA

The automobile sector continued to ply on the slow lane in January 2020 with total vehicles registrations declining 7.17% year-on-year as per FADA data, indicating the persisting contraction in the sector.

Except for three-wheelers and tractors, all other segments witnessed contraction as per the monthly vehicle registration data released by the Federation of Automobile Dealers Associations (FADA).

As per the data, two- wheeler registrations declined by 8.82% year-on- year while passenger vehicles registrations plunged 4.61% and commercial vehicles by 6.89%.

Vehicle registrations sputter, slide 7% on poor sentiment

On the other hand, registrations of three-wheelers showed a growth of 9.17% while tractor registrations rose by 5.11%.

This is the first time that tractors have been included in the list. “Auto sales continue to be in the negative territory in the month of January,” FADA president Ashish Harsharaj Kale said.

“Except for three-wheelers, others suffered, with many consumers still not concluding their purchase decisions,” he added.

“The ongoing transition of BS-IV to BS-VI is also a factor in the delayed purchase decisions.” Mr. Kale said the overall weak economic sentiment continues in the market and “even the Union Budget, although an inclusive one with growth drivers for the mid to long- term, did not have any direct measures to spur growth in the sector.”

‘BS-IV units returnable’

“The last 14 months has seen one of its toughest times in auto sales. FADA has, therefore, requested the OEM’s, through the SIAM, that any BS-IV vehicle billed further, which is not against specific customer order, to be on returnable basis to avoid financial loss to our members,” Mr. Kale said.

He said the association will also co-ordinate with banks and NBFCs to ensure financing of BS-1V inventory till the stock is liquidated before March 31 and for the smooth transition to BS-VI without any financial implications to any stakeholder.

Why you should pay for quality journalism - Click to know more

Recommended for you

Printable version | Apr 2, 2020 12:19:47 AM |

Next Story