FADA releases Nov 2019 Vehicle Registration Data; extended cheer to dealer community- Check key details
The Federation of Automobile Dealers Associations (FADA) on Wednesday released the Monthly Vehicle Registration Data for the Month of November 2019. Chart showing Vehicle Registration Data for November’19 with YoY comparison can be found below:
Commenting on how November’19 performed, FADA President, Ashish Harsharaj Kale said, “With strong spillover demand post the festive season, the month of November gave extended cheer to the dealer community with retails registering a slight growth YoY in all segments except CVs, where demand still continues to be quite weak."
Here are key details to know:-
- Agriculture produce now trickling into the markets after the extended monsoon which delayed the crop also contributed to the uptick in the semi urban and rural markets. Along with this, effects of the positive pressure exerted by the government is also playing its part.
- With slight positivity in November, dealers inventory remained more or less at the same levels in both 2W and PV Categories. Dealers though got an opportunity to further reduce their inventory in CV category by ~5 days.
- Once again appreciating the efforts of all our OEM’s in regulating wholesale supplies, FADA is quite confident that the inventory in all the three categories, viz. 2W, PV and CV will soon be in the range of our recommended and requested optimum range of 3 weeks.
- Going ahead, with our OEM’s further reducing wholesale billing, the probabilities of negative financial Impact further reduces for the dealer community as the Indian Auto Industry heads into the technology leap of BS4 to BS6 in such an uncertain and dynamic demand situation.
- Although better than what the situation was pre-festivals, liquidity and credit confidence both for retail customers as well as dealers is still not near the normal levels required for sustained growth with the Banking and Finance Industry still at the cross roads of business aggression and business caution, despite strong advocacy of retail credit growth by the government.
- December is the month of Model Change and a month of Attractive Offers. This coupled with Continued Government Focus on Improving the Overall Economic Situation and Especially Automobiles sales which is considered the Barometer of a Country’s Economic Situation, along with the Continued Strong Advocacy by the Government for Aggressive Retail Credit by the BFSI’s, FADA is hopeful of a 3rd month of Positive Retail Growth in December and Further Inventory Reduction, to end the Calendar Year on a Positive Note.
- FADA continues its recommendation to its members to tread with Caution, especially with regards to inventory and Costs during these dynamic times of Fluctuating Consumer Sentiment and the Upcoming BS6 transition.
- FADA will continue to engage with all the stakeholders for a smooth transition into the BS6 Regime for its members and will explore all Avenues available to it, to ensure Zero Financial loss to its members in such Challenging Times.”
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