Oct auto registrations fall 5.33% YoY, FADA says worst season in a decade

Festive season sales between October 7 and November 17 decline by 18.81%

Vehicle registration in October including all segments fell 5.33 per cent year-on-year. The fall was a sharper 26.63 per cent when compared to October 2019, Federation of Automobile Dealers Association said in a statement on Thursday.

A total of 1,364,526 units were retailed during the month compared to 1,441,299 units in October 2020. The fall in the YoY sales widens the gap with the October 19 volumes when 1,860,098 units were sold.

Alluding to the 42-day festive period (October 7 to November 17), the dealer body said, it was the worst festive season for the automobile market in a decade with overall retail sales dropping by 20 per cent YoY and 20.82 per cent compared to 2019.    

“We have witnessed the worst festive season in the last decade. Semiconductor shortage which was already a full blown crisis showed its true colours when in spite of an above healthy demand, we could not cater to customer’s needs,” said Vinkesh Gulati, president, Federation of Automobile Dealers Association (FADA). While SUVs and luxury cars saw a huge shortage, demand for the entry level cars was subdued as customers in this segment are wary of spending and are prioritizing saving for emergencies.

The two wheeler segment continues to face the brunt of low sales with the entry level category being the most impacted, FADA said in the statement. As a result of the poor demand during the festive season, two wheeler dealers are saddled with an average inventory of 40-45 days.