The passenger vehicle (PV) retail sales in January declined 4.61% to 2.90 lakh units as compared to the same month last year, hit by a tepid response by end customers.
According to the Federation of Automobile Dealers Associations (FADA), which collected vehicle registration data from 1,223 out of the 1,432 regional transport offices (RTOs), PV sales stood at 3,04,929 units in January 2019.
Commenting on how January’20 performed, FADA President, Ashish Harsharaj Kale said, “Auto sales continue to be in the negative territory in January, except for 3W, with many consumers still not concluding on their decisions. Ongoing Transition of BS-IV to BS-VI is also a factor in a delayed purchase decision. Overall Weak Economic sentiment continues and even the Budget 2020, although an inclusive budget with growth drivers for the mid to long term, did not have any direct measures nor any immediate growth Spurring initiatives for the Auto Sector.”
For the first time, FADA has given Registration Figures for the Tractor Segment, thereby covering the entire mobility spectrum. Tractor numbers will also give a brief insight into Rural Demand Situation. FADA’s Appeal in SC for Extension of Sale beyond 31st of March for Dealer stock was not Considered by the Hon’ble Court. With the Weak Demand Situation, Liquidation of Complete BS-IV Inventory is the Top Focus for Us and FADA has already appealed to all OEM’s to Switch Over Completely to BS6 Despatches to Dealers. The last 14-months has seen one of its toughest times in auto sales. FADA has therefore requested our OEM’s through SIAM that any BS-IV Vehicle Billed further which are not against specific customer orders, to be on a returnable basis to avoid financial loss to Our Members. FADA will also Co-ordinate with Banks and NBFC’s to Ensure Financing of BS-IV Inventory till the SC mandated date of 31st of March to ensure Liquidation of the BS4 Stocks and Smooth Transition to BS6 without any Financial Implication to any stakeholder.
With Continued weak consumer sentiment and the overall economic situation, as well as the Upcoming BS-VI Transition, the near-term Demand situation will continue to be dynamic. We appeal to the Government to continue announcing the positive measure, specifically for the Auto Industry, as well as for the Overall Economy which will help us return to growth Trajectory at the earliest.”