19th November’19, Hyderabad: The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of October’19.
October-19 Retail Sales
Commenting on October’19 performance FADA President, Mr Ashish Harsharaj Kale said, “We thank all our principals for taking stock reduction measures.
FADA especially appreciates the actions taken by our 2W OEM’s for delivering on their commitment, of reducing stock with festival retail growth. Although not at FADA recommended levels of 21 days, 2W inventory has reduced from an alarming level. PV inventory already at reasonable levels has further reduced and now almost at the recommended level with all our principals taking strong and positive steps towards stock reduction. CV inventory has also reduced although with retail continuing to be weak, where further wholesale regulation is required to reach FADA’s 21 days recommended levels.
Heading into the unknown territory of BS6 transition, more needs to be done towards inventory reduction to avoid dealer losses.
October retails were in the positive giving a much-needed respite to the auto industry and especially our dealer community after months of de-growth. The festivals saw very good footfalls at dealerships across most of the geographies, the consumer sentiment was positive, and purchase decisions were concluded as used to be during the growth years.
Strong support from bank’s & NBFC’s helped convert the festive mood of the consumer into retails. With continued liquidity easing, the business appetite of banks & NBFC’s have grown and will surely aid the industry in the path to recovery as the consumer sentiment strengthens in the coming days. FADA requests both banks and NBFC’s to provide more support for a stronger recovery.
As the complete effect of the positive measures taken by the government plays out and banks and NBFC’s aggression continuing post the festive season, strengthening of demand is expected along with bottoming out of the de-growth.
With a new normal now being more or less set, FADA expects the near term to be stable and consumer sentiment changing for the positive as the economy heads towards recovery with the government’s strong focus and actions towards it.
FADA continues its recommendation to its members to tread with caution, especially with regards to inventory and costs during this dynamic time of fluctuating consumer sentiment due to the overall weak economic situation and BS6 transition
FADA will also continue to engage with all the stakeholders for a smooth transition into the BS6 regime for its members.”
Key Findings from our Online Members Survey
13% Dealers rated it as Bad (41% in Septembert’19)
45% Dealers rated it as Neutral (41% in September’19)
o 41% Dealers rated it as Neutral (56% in September’19)
o 10% Dealers rated it as Bad (34% in September’19)
o 43% Dealers rated it as Growth
o 30% Dealers rated it as Flat
o 27% Dealers rated it as De-Growth
Expectation in November
o 48% Dealers rated it as Flat
o 33% Dealers rated it as De-Growth
o 19% Dealers rated it as Growth
o Average inventory for PVs ranges from 25 – 30 days (30-35 days in September’19)
o Average inventory for 2W ranges from 35 – 40 days (60-65 days in September’19)
o Average inventory for CV ranges from 40 – 45 days (50-55 days in September’19)
Charts showing Vehicle Registration Data for October’19 with YoY comparison and 42 Days Festive Period can be found below:
Vehicle Registration Data for October’19
42 Days Festival Period
|CATEGORY||FESTIVE 2019||FESTIVE 2018||YoY%|
Source: FADA Research