The Federation of Automobile Dealers Associations (FADA) has released the Monthly Vehicle Registration Data for the Month of October’19. Commenting on October’19 performance FADA President, Mr Ashish Harsharaj Kale said, “We thank all our principals for taking stock reduction measures. FADA especially appreciates the actions taken by our 2W OEMs for delivering on their commitment, of reducing stock with festival retail growth. Although not at FADA recommended levels of 21 days, 2W inventory has reduced from an alarming level.”
The above numbers do not have figures from 352 RTOs mainly from states of AP, KL, MP & TS. AP, MP & TS are not yet on Vahan and KL comparative fig. for Oct’18 is not available, hence it has not been taken for Comparative Calculation. Vehicle Registration Data has been collated as on 11.11.19 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,197 out of 1,408 RTOs.
He added, “PV inventory already at reasonable levels has further reduced and now almost at the recommended level with all our principals taking strong and positive steps towards stock reduction. CV inventory has also reduced although with retail continuing to be weak, where further wholesale regulation is required to reach FADA’s 21 days recommended levels. Heading into the unknown territory of BS6 transition, more needs to be done towards inventory reduction to avoid dealer losses.
October retails were in the positive giving a much-needed respite to the auto industry and especially our dealer community after months of de-growth. The festivals saw very good footfalls at dealerships across most of the geographies, the consumer sentiment was positive, and purchase decisions were concluded as used to be during the growth years. Strong support from bank’s & NBFC’s helped convert the festive mood of the consumer into retails. With continued liquidity easing, the business appetite of banks & NBFC’s have grown and will surely aid the industry in the path to recovery as the consumer sentiment strengthens in the coming days. FADA requests both banks and NBFC’s to provide more support for a stronger recovery.
As the complete effect of the positive measures taken by the government plays out and banks and NBFC’s aggression continuing post the festive season, strengthening of demand is expected along with bottoming out of the de-growth. With a new normal now being more or less set, FADA expects the near term to be stable and consumer sentiment changing for the positive as the economy heads towards recovery with the government’s strong focus and actions towards it. FADA continues its recommendation to its members to tread with caution, especially with regards to inventory and costs during this dynamic time of fluctuating consumer sentiment due to overall weak economic situation and BS6 transition.