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Vehicle registration across segments drops 2.7% YoY in November: FADA

The fall was a sharper 20% when compared with the pre-pandemic period

vehicles | India

Shally Seth Mohile  |  Mumbai 

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Vehicle registration across all automotive (auto) segments dropped 2.7 per cent year-on-year (YoY) to 1,817,600 units in November, said the Federation of Automobile Dealers Association (FADA) on Wednesday. Compared with 2019, the overall registration during the month dropped almost 20 per cent, said the apex national body representing automobile dealers of

Even Diwali — considered auspicious for big-ticket purchases — couldn’t prop up flagging auto sales. While supply-side issues plagued carmakers, two-wheeler makers struggled to revive demand. Two-wheeler registrations dropped 0.75 per cent YoY in November on an already low base of 1,444,762 units last year. Passenger vehicle (PV) sales fell 19.44 per cent to 240,234 units. The drop was a steep 20.29 per cent and 14.02 per cent for two-wheelers and PVs, respectively, when compared with November 2019.

PV despatches to dealers during the month declined 14 per cent to 286,000 units, compared with 246,000 units a year ago, reveal industry estimates. PV sales rose 12.73 per cent in November 2020 to 285,367 units YoY.

“Auto retail for the month of November continued to remain in the negative zone. Unseasonal rainfall in southern states was a killjoy,” said Vinkesh Gulati, president, FADA.


According to Gulati, unless rural starts showing signs of strength, overall retail will continue to remain weak. While the two-wheeler segment saw sales on a par compared to last year (which itself was a bad year), the overall sentiment remained low since the marriage season didn’t help in revival, except in one or two states.

Besides, crop loss due to incessant rains and flood in southern states, high acquisition price, as well as fuel costs, kept customers at bay. “Further, there are no signs of increase in enquiry levels, which is a bigger cause for concern.”

The apex body is hopeful that the global chip shortage will ease in times to come and therefore, diminish the waiting period for and augment sales.

It has requested two-wheeler makers to announce an attractive scheme which can work as a stimulus for growth in sales, and to consistently work on a 21-day inventory cycle. Albeit on a low base, commercial vehicle and three-wheeler segments advanced on-year at a brisk pace by 13.32 per cent and 66.85 per cent, respectively. A pick-up in economic activity and improved viability of transporters also buoyed commercial vehicle sales. With diesel prices at record highs, supply of compressed natural gas remained constrained due to its high demand.­

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First Published: Wed, December 08 2021. 11:46 IST