23/11/2018
PUNE (NEW
DELHI): The Federation of Automobile Dealers Associations
(FADA) voiced its concern over the dampened festive season and the de-growth
which the automobile industry is currently staring at.
Commenting on the Navratri and Diwali festival sales, FADA
President, Ashish Harsharaj Kale said, “We have not seen such a dull
festive season, in the past few years as many negative factors came into play
during this season which weakened the consumer sentiment and postponed their
purchase decision. It is a matter of deep concern for our dealership community.
Commercial vehicle sales which have been growing at a very
good rate, still remained positive in their sales growth, but some demand
softening could be seen in CV’s too as the growth percentage has come down
during this period.
The ongoing NBFC Liquidity issue also is a concern for all the
segments and especially for the two- wheeler and commercial vehicle segment
where we are seeing a cautious approach from the NBFC’s during and post Diwali
season. FADA hopes that with the recent liquidity measures taken by the RBI and
the Government, Auto NBFC’s and Banks would be better placed to continue their
strong support to auto retails, which contributed majorly for the industry to
grow at a healthy rate from April-Sept.
We request the Government and the RBI for further ease of
liquidity for Auto NBFC’s, as they are one of the key growth drivers in Auto
Retail and are also operating in a less risky business environment than Infra
and Housing NBFC’s due to the short repayment cycle of Auto Loans and the
Mobility of the assets.”
Concluding on a Positive note FADA President said, “We remain
hopeful of recovery as overall inquiries during the festive period were robust,
and postponement of Purchase was the main reason for muted sales. With positive
policy measures, the possibility of consumer sentiment turning positive is
quite strong as the agriculture produce is now coming to the markets, fuel
prices are coming down substantially and infrastructure growth is still going
strong as well as positive liquidity measures are being taken. The auto retail
industry can still deliver positive growth in the remaining 5 months of this FY
and contribute substantially to the overall growth vision of our Government as
consumer interest is still visible and strong and FADA and its members will
work strongly to achieve that”
FADA is releasing the sales trends for the first time and
these trends are based on vehicle registration figures from Navratri to 15 days
post Dhanteras as there is a time lag of 10-12 days between delivery and
registration. The sales numbers have been collated from its members and other
sources and the chart below depicts vehicle registration trends during the
festive season and covers almost 80% of the various regions of our country.
Going forward F A D A will be releasing these trends regularly
and from April would be doing so region wise. Our study shows that during
the 42 days festive period and on YoY basis, total vehicle
registrations fell by 11%, Two- Wheelers fell by 13% and Passenger Vehicles
fell by 14%. 3 Wheelers and Commercial Vehicles held some ground and grew by
10% and 16%.
For the Current Financial Year up to 20th November’18 and
on YoY basis, Total Vehicle Registrations has grown around 6%, 2Wheelers by 5%,
3Wheelers by 53% and Commercial Vehicles by 30%. Passenger Vehicles over the
same period has de-grown by more than 1%.
The Inventory levels before the festivals began, were at
around 60 days and 50 days for 2Wheelers and Passenger Vehicles. The same
merely came down to around 50- and 45-days post Festivities and still remain
higher than normal.
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