Auto retail market sees improvement in January 2019: FADA
Despite the smart uptick FADA remains cautiously optimistic on the PV segment.
The Federation of Automobile Dealers Associations (FADA) today announced the monthly vehicle registration data for the month of January 2019, which saw sales improving across segments — PVs, 2Ws, 3Ws and CVs — with total sales touching 1,565,150 units, a growth of 8.5 percent.
According to the dealer body, the passenger vehicle (PV) retail sales in the month was 271,395 units (+34% MoM), compared to 202,585 units in December 2018. FADA says, while the monthly registration sales saw "more than expected spike" due to the extended stock clearance sale and new model launches resulting into "faint signs of positive sentiment restoration". Despite the smart uptick FADA remains cautiously optimistic on the PV segment.
In terms of 2W and CVs, the retail sales saw minor improvement with was 1,189,679 (+4.25%) and 53,732 (+0.04%) being sold respectively.
Commenting on the January sales, Ashish Harsharaj Kale, president, FADA said, “As predicted, healthy inquiry levels seen in December finally showed signs of conversions with the year-end offers continuing in January, especially by PV OEMs which has helped the customer in making the final purchase. Consumers interest, which had remained buoyant has slowly but surely started converting to sales in better percentages. Although all the sectors on a monthly basis have shown signs of positive growth, 2W growth rates are not at a healthy high and are seen positive due to a huge de-growth in December. CV growth is flat and has substantially dropped from the high growth rate it had maintained through year to date."
The auto retailer body is optimistic that the retail sales will see an uptick on the back of the Interim Budget announcement of new tax rebate for individuals of income up to Rs 500,000 in addition to the assured income to farmers, that will bring in positive customer sentiment. This Kale says, "will hopefully pull up the demand for 2Ws, LCVs and tractors."
FADA highlights that the inventory of 2W dealers still continues to be very high, as 2W retail sales are still under pressure and hopes that 2W OEMs take a realistic stock of the situation prevailing on the ground and reduce wholesale billing.
On this initiative of releasing registration numbers by FADA, Kale said, “Beginning next month, we will release category-wise comparison figures from both monthly and yearly perspective.”
Disclaimer: Vehicle Registration Data has been collated in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,081 out of 1,437 RTOs.
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