The Federation of Automobile Dealers Associations (FADA) today released the monthly vehicle registration data for the month of December 2020, stating that this is the first time in the financial year 2020-21 that vehicle registrations have reflected a positive growth with a year-on-year increase of 11.01 percent. The association credits most of this growth to the festive season spillover demand and sales that occurred due to price hike announcements by several manufacturers in January 2021.
Two-wheelers, passenger vehicles, and tractor categories grew by 11.8 percent, 24 percent, and 35.5 percent (YoY) while commercial vehicles and three-wheelers continued to degrow by 13.5 percent and 52.7 percent (YoY).
For further clarity in CV registrations, FADA for the first time has released a split in the CV category by introducing LCV (light commercial vehicles), MCV, and HCV (heavy commercial vehicles) wise registrations.
FADA also points out that dealer inventory continues to fall with PV inventory ranging from 15-20 days and 2W inventory at 30-35 days. PV dealers continue to face supply-side issues for the second straight month leading to a higher waiting period as high as eight months.
FADA looks forward to demanding spurring initiatives in the upcoming Union Budget and specific initiatives for Auto Industry to continue Auto Sales in a higher gear.
“Automobile registrations for the first time witnessed YoY growth in this Financial Year by growing 11% in the month of December. A good crop season, better offers in the 2W segment, new launches both in PV as well as 2W, and fear of price increase in the month of January kept the demand going. Supply-side issues in passenger vehicles continued for the 2nd straight month thus making waiting period as high as 8 months in select OEM vehicles,” FADA President, Mr. Vinkesh Gulati said.
“The CV segment continues to see demand pressure even though on YoY basis the segment fell by 13.5% due to lower base. Increased intra-city goods movement continued to help SCV’s outperform the M&HCV segment as Axle load norms, increased fuel & vehicle cost and higher freight rates continued to play spoilsport.
“Tractor continues to outshine supply for 6 straight months further confirming the fact that Bharat carries on to lead India’s economic recovery.”
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