FADA contradicts SIAM, says retail sales down 13% in Q2

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Published: October 19, 2019 6:05:50 AM

Both FADA and SIAM source their retail sales numbers from vehicle registration data from the Vahan database maintained by the ministry of road transport and highways.

FADA, SIAM, auto sale, retail sale, Q2, passenger vehicles, industry news, automobile industry The sharpest decline was in sales of passenger vehicles (PV), which dipped 20.1% to 1,57,972 units against the same month last year.

Clearly signalling that the never-seen-before high discounts and the onset of festival season have failed to enthuse buyers, automobile dealers’ body Federation of Automobile Dealers Associations (FADA) on Friday said that retail sales across categories declined by 12.9% to 13,75,314 units in September, as against 15,79,191 units in the same month last year.

The sharpest decline was in sales of passenger vehicles (PV), which dipped 20.1% to 1,57,972 units against the same month last year. Two-wheeler sales fell 12.1% to 10,98,271 units during the month compared with 12,48,998 units in the year-ago period. Commercial vehicle sales fell by 18.5% to 63,518 units against 77,980 units in September last year.

Interestingly, FADA’s retail sales numbers are in stark contrast to the numbers provided by automobile industry body Society of Indian Automobile Manufacturers (SIAM) last week.

On October 11, SIAM had said that retail sales during September had improved and overall numbers across categories was up 6.5% compared to the same month last year.

SIAM had said that during September retail sales rose 8% y-o-y for PVs and 6.5% y-o-y for two-wheelers, in an indication that consumer demand was better than the previous months.

“We have to wait till October to make a forecast. The festive season could start a recovery but we will have to wait and watch,” SIAM president Rajan Wadhera had said.

Both FADA and SIAM source their retail sales numbers from vehicle registration data from the Vahan database maintained by the ministry of road transport and highways.

On Friday, FADA president Ashish Harsharaj Kale said retail sales were under pressure during the month and the decline was on expected lines.

“The continued heavy rains in various regions and the shraddh period also contributed to this sales lag. The complete effect of the positive measures announced by the government was still not visible at the retail levels in the month of September,” he added.

High inventory levels which started with the festive season last year still continue to be a problematic area, Kale said. While commercial vehicles showed slight reduction in inventory levels, the passenger vehicle segment witnessed an increase as companies pushed in higher number of units anticipating higher sales during the festive season, FADA said.

Two-wheeler inventory also continues to be very high and is a big cause of concern, it added. Fada said it has compiled data from 1,188 out of a total of 1,461 RTOs in the country.

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