February 2019 Vehicle Registration Data is here - Sales falls to newer lows; check what all led to this big downfall
FADA Vehicles Registration, Sales Data: The Monthly Vehicle Registration Data for the month of February 2019 is certainly not positive news for Indian Auto Sector. The Federation of Automobile Dealers Associations (FADA) on Wednesday released the Monthly Vehicle Registration Data for the month of Feb 2019, and according to the data, auto industry has witnessed February sales falling to newer lows owing to weak consumer demand persisting 6th month in a row.
February 2019 Vehicle Registration Data: Highlights
- Passenger Vehicles segment sales fell sharply after a temporary spike in January
- 2 wheeler de-growth increased further.
- Commercial Vehicles segment sales fared better but witnessed weakening of demand
- Dealer inventory levels across all categories at an unsustainable high and at alarming levels in 2 wheelers segment
Reacting to the weak Feb 2019 sales numbers, FADA President, Ashish Harsharaj Kale said, "Starting with the huge hike in insurance costs in September, we have seen a lot of negative factors come together in the past few months, leading to major postponement in purchase decisions and overall weakening of consumer sentiment."
Moreover, the FADA President added, "After a month of spike in PV sales in January which was largely due to year-end stock clearance getting extended and few new launches which generated some excitement, the industry is once again witnessing downward trend as February turned out to be one of the slowest months for Auto Retails during this financial year." “FADA believes, as does the entire Auto Industry that the dip in demand is temporary and India will continue to be amongst the Fastest Growing Auto Markets in the world. Having said that, navigating smoothly out of the current slowdown is the need and the entire auto ecosystem, including dealers, will have to and already are in a cost regulation mode, till the industry returns to vibrancy.”
"Indian Auto Sales are experiencing a prolonged slowdown as its already seen 6 months of slowing sales and growth reversal and positive triggers in the near term appear few," Kale concludes.
Auto Dealers across the length and breadth of the country are in a high stock situation across all categories and inventory levels of passenger vehicles and commercial vehicles.
As per a release, " FADA has been highlighting the high level of inventory amongst the 2W Dealers and would like to express serious concern that it has now reached alarming proportions and in some geographies has breached the unheard level of 100 days of stock as per todays retail situation.”
According to a survey conducted by FADA among its members, the current inventory levels are as following:-
- PV ranges from 50-60 days
- 2W ranges from 80-90 days
- CV ranges from 45-50 days
NOTE: Vehicle Registration Data has been collated in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,087 out of 1,440 RTOs.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.