Even as PVs numbers grew by 9.81 pct, vehicle registrations in September drop 10.24 pct on YoY basis: FADA
September Vehicle Registrations saw a 10.24% drop on YoY basis as per data released by FADA. However, on MoM basis, registrations rose by 11.45%. While 2-wheelers by 12.62%, 3-Wheelers dipped by 58.86%. On the other hand PVs grew by 9.81% - they rose for the first time since lockdown. While CVs de-grew by 33.65%, tractors registered a whopping 80.39% growth
September Vehicle Registrations saw a 10.24% drop on YoY basis as per data released by FADA. However, on MoM basis, registrations rose by 11.45%. While 2-wheelers by 12.62%, 3-Wheelers dipped by 58.86%. On the other hand PVs grew by 9.81% - they rose for the first time since lockdown. While CVs de-grew by 33.65%, tractors registered a whopping 80.39% growth.
Vinkesh Gulati, President, FADA said, "Passenger Vehicles for the first time saw positive growth coming back on YoY basis. With banks becoming more considerate to finance vehicles, Entry level passenger vehicles saw good demand. Lower base during last FY also helped the cause."
He further added that Tractor sales continued their dream run with good Rabi season resulting in good disposable income.
In comparison to Urban market, Rural market saw its rub off effect on 2-Wheeler, small passenger vehicles and small commercial vehicles.
Overall 2-wheeler, 3-Wheeler, and Commercial Vehicles continued to march ahead on MoM basis and inched up to narrow their gap with last year’s sale.
Pre-covid levels are yet to be seen across all categories. Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, Gujarat and West Bengal are now showing signs of revival as economic activities in these states are at its peak since lockdown began in March
As far as near term outlook is concerned, FADA anticipates a high growth period during festive season. The association feels that the Government’s consideration to waive off interest on interest during moratorium up to Rs 2 Crores will help in improving customer sentiment.
With Banks and NBFCs also gearing up with various festival offers to woo retail customers, Auto Sales is expected to witness a renewed growth and may close at par with last year. Passenger vehicles and two wheelers are expected to lead the way.
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On the Inventory front, 2-Wheeler inventory stands at 45-50 days, PVs stand at 35-40 days. FADA feel that any dampener in vehicle sales during the upcoming festivals will have a catastrophic impact on Dealers financial health.
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