Auto registrations fall by 13 pc in September: FADA

Vehicle registrations across the country dropped by nearly 13 per cent in September year-on-year due to weak consumer sentiment, continuing monsoons and the shradh period in which sales slow down, the Federation of Automobile Dealers Associations (FADA) said on Friday.

Two-wheeler registrations fell to 10.98 lakh last month compared to 12.49 lakh in September last year, marking a decline of 12.1 per cent. Passenger vehicle registrations plunged by 20.1 per cent to 1.58 lakh from 1.97 lakh in the year-ago period.

Commercial vehicles skidded by 18.5 per cent to 63,518 registrations versus 77,890, data released by FADA showed. Only three-wheelers showed a marginal uptick of 1.8 per cent with 55,553 registrations in September 2019 compared to 54,560 in the year-ago period.

"High inventory concerns which started with the previous festive season continues to be a problematic area for auto dealers," said FADA President Ashish Harsharaj Kale. "Despite factoring in the coming festive season demand, two-wheeler inventory continues to be high and is a big cause of concern."

Kale said the effects of recent positive measures announced by the government are not yet visible at retail levels. With the implementation of mandatory BS-VI emission norms only five months away and weakening demand, he urged automobile manufacturers to restrain wholesale billings.

The auto sector has been undergoing a crippling slump with nearly all manufacturers reporting falling sales and job losses due to subdued consumer sentiment amid an economic slowdown. The auto industry accounts for nearly half of India's manufacturing output and employs over 3.5 crore people directly and indirectly.

Last week, the Society of Indian Automobile Manufacturers (SIAM) reported 22.41 per cent fall in domestic vehicle sales across all categories.

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.

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