Vehicle registration up 4 per cent in October on back of festival sales, say dealers

Vehicle registrations witnessed a growth in October, with the festivals of Navratri/ Dussehra and Diwali falling in the same month, the Federation of Automobile Dealers' Associations (FADA) said.

 According to FADA, the vehicle registrations increased by 4 per cent on year-on-year (YoY) basis during the month. The registration of the two-wheeler segment registered a growth of 5 per cent whereas the three-wheeler segment was up by 4 per cent and retail sales in the passenger vehicles (PV) segment grew by 11 per cent. Although, the registration in commercial vehicles (CV) were down by 23 per cent YoY.

In numbers, the registration of two-wheeler grew to 13,34,941 units in October, as compared with 12,70,261 units in the subsequent month last year. Likewise, the registrations in the PV segment grew to 2,48,036 units during the month, as against 2,23,498 units in the same month of the previous year. The CV segment reported registration of 67,060 units in October, as compared with 87,618 units in the same month last year.

"FADA specially appreciates the actions taken by two-wheeler manufacturers for delivering on their commitment, of reducing stock with Festival Retail Growth. Although not at FADA recommended levels of 21 days, the two-wheeler inventory has reduced from an alarming level.
 
PV inventory, already at reasonable levels, has further reduced and is now at the recommended levels, with all our principals taking strong and positive steps towards stock reduction," Mr. Ashish Harsharaj Kale, President, FADA, said.

CV segment had reduction in the supply, though with retail remaining weak, wholesale regulation was required to achieve inventory levels of 21 days, as recommended by the association, he said.

According to the association, the average inventory for PVs varied from 25-30 days in October (as compared to 30-35 days in September), for two-wheeler from 35-40 days (60-65 days in September) and for CVs from 40-45 days (50-55 days in September).

Nevertheless, FADA remains careful about the near and mid-term, post the festive season, as the transition to BS-VI approaches and the rural demand is yet to pick up due to an extended and excessive monsoon. Mr. Kale added that the business appetite of banks and NBFCs was seen to be growing and would aid in demand recovery in the coming months.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.