F A D A releases February’19 Vehicle Registration Data

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13th March’19, New Delhi: The Federation of Automobile Dealers Associations (F A D A) today released
the Monthly Vehicle Registration Data for the month of Februry’19.

Commenting on the February numbers, F A D A President, Mr Ashish Harsharaj Kale said, “After a month
of spike in PV sales in January which was largely due to year end stock clearance getting extended and
Few New Launches which generated some excitement, the Industry is once again witnessing
downward trend as February turned out to be one of the slowest month for Auto Retails during this
financial year. Indian Auto Sales are experiencing a Prolonged Slowdown as its already seen 6 months
of Slowing Sales and growth reversal and Positive triggers in the near term appear Few.

Starting with the Huge hike in Insurance costs in September, we have seen a lot of negative factors come
together in the past few months, leading to major postponement in purchase decisions and overall
weakening of Consumer sentiment.

F A D A releases February’19 Vehicle Registration Data

Auto Dealers across the length and breadth of the Country are in a High stock Situation across all
Categories and Inventory levels of Passenger Vehicles and Commercial Vehicles, which had seen partial
correction in the past 2 months are now back to the unsustainable levels seen in November 2018.
F A D A has been highlighting the High Level of Inventory amongst the 2W Dealers and would like to
Express Serious Concern that it has now reached Alarming Proportions and in some geographies has
breached the unheard level of 100 days of stock as per todays retail situation.”

Commenting Further F A D A President said, “F A D A believes, as does the entire Auto Industry that the
dip in demand is temporary and India will continue to be amongst the Fastest Growing Auto Markets
in the World. Having said that, navigating smoothly out of the current slowdown is the need and the
entire Auto ecosystem, including dealers, will have to and already are in a cost regulation mode, till
the Industry returns to Vibrancy.”

Already facing a substantial increase in operational costs in recent times due to various factors as well as
increased working capital needs and that too in a Tight Liquidity Environment, Prolonged maintenance
of such High Inventory and its additional costs is unsustainable and with demand continuing to be a
challenge, Dealers would be urgently looking to reduce their inventory in the months of March and April
Given the Current Environment F A D A urges Our OEMs to take a realistic stock of the Current Retail
Situation and Recalibrate their production to regulate Dealer Invoicing in these 2 months to facilitate