Auto Registrations Plunge 15% In December On Weak Buyer Sentiment: FADA
Vehicle registrations across the country declined by 15 per cent in December year-on-year due to weak consumer sentiment despite deep discounts being offered by manufacturers, the Federation of Automobile Dealers Associations (FADA) said on Tuesday.
The de-growth was not on expected lines as inquiry levels all through the month were quite robust, said FADA President Ashish Harsharaj Kale. "Consumer sentiment continues to be very weak as buyers did not conclude on purchase even after inquiring and despite the best offers being available," he said in a statement.
Two-wheeler registrations totalled 12.64 lakh last month compared to 15 lakh in December 2018, marking a fall of 16 per cent.
Three-wheeler registrations slipped by one per cent with 58,324 registrations in November 2019 compared to 58,031 in the year-ago period.
Passenger vehicle registrations edged lower by 9 per cent to 2.15 lakh from 2.36 lakh in the year-ago period. But commercial vehicles witnessed a dramatic drop of 21 per cent to 67,793 registrations versus 85,833 in November 2018, data released by FADA showed.
That took overall vehicle registrations to 16.06 lakh in December 2019, down 15 per cent from 18.8 lakh in November 2018.
Kale said with such a weak consumer sentiment, FADA recommends a cautious approach to its members with a serious focus on BS-IV inventory liquidation.
"FADA will work towards seeking relief from the Supreme Court for BS-IV inventory of its members as with such weak consumer demand, the near-term retail sales are unpredictable. It is extremely difficult for our members to continue the current business and also ensure a nil BS-IV inventory by March 31," he said.
The automobile sector has been experiencing a slump for several months with nearly all manufacturers reporting falling sales due to subdued consumer sentiment amid an economic slowdown.
FADA India represents over 15,000 automobile dealers having 25,000 dealerships including 30 associations of automobile dealers at the regional, state and city levels accounting for 90 per cent of market share.
(ANI)
