Auto Registration Data Continues To Reflect Weakness In Customer Sentiment Says FADA

The Federation of Automobile Dealers Associations (FADA) released the Monthly Vehicle Registration Data for the Month of September'19. It noted that the September Auto Registration fell to a newer low and continued to reflect weakness in customer sentiment even with onset of Festival season and never seen before discounts. Continuance of heavy monsoons and complete Shraddh period within the month also contributed to subdued retail performance.

On a YoY basis, overall Vehicle Registrations fell by 12.9%. 2-Wheeler was down by 12.1%, CV was down by 18.5%, PV reduced by 20.1% and 3W saw a marginal growth of 1.8%. Passenger Vehicles inventory rose marginally in anticipation of a good festival demand and CV inventory reduced marginally in preparation for BS-VI.2W inventory continues to be at very High Levels.

With mandatory BS-VI implementation just 5 months away and demand still not very strong, FADA advocates restrained wholesale billing to its members and once again urges all OEMs to Regulate wholesale billing. Festive season which started with Onam and followed by Ganpati, Vishwakarma Puja and start of Navratri sees a lacklustre demand till date, FADA noted. However, post Dussehra Period and Diwali Season is seen to be positive as Monsoon receded with abundant rains and positive measures of government take effect along with improving liquidity.

Powered by Capital Market - Live News