The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of December’19.
December 2019 Retail Sales
Commenting on how December’19 performed, FADA President, Mr Ashish Harsharaj Kale said,
December sales De-growth was not on expected lines as the inquiry levels all through the month were quite robust. Consumer Sentiment Continues to be very weak as Customers did not conclude on the Purchase even after taking the efforts of Inquiring and despite the Best Offers being available.
Mr Ashish Harsharaj Kale further added,
“The Sharp decline in growth has denied the Dealer Community an opportunity to Reduce its BS-4 Inventory making the transition to BS-6 trickier. With such a weak Consumer Sentiment FADA recommends a Very Cautious approach to its members with serious focus on BS-4 Inventory liquidation.
FADA will work towards seeking relief from the Honourable Supreme Court for the BS-4 Inventory of its members as with such weak consumer demand the near term Retail sales are unpredictable, making it extremely difficult for our members to Continue the Current Business and also ensure a Nil BS-4 Inventory on 31st of March.
On the Inventory Front, although there was a slight reduction across all segments, the CV and 2W inventory still remains a concern, especially looking at the Transition and the Current Weakness in Demand. PV for the first time is in the FADA recommended Range of 3 Weeks and a Shout out of appreciation to our PV OEM’s for considering our Recommendation, which benefits the entire ecosystem.
Liquidity still remains a concern for the Dealer Community as well as for the Retail Customer as Banking and Finance Industry continues to be in Cautious mode despite Sufficient Liquidity being Available. Along with Government Measures aimed at Increasing Demand, Equal Importance needs to be given to Availability of Reasonably Liberal Credit, especially in a developing Country like ours where the Growth is Driven by First Time Buyers or Individuals and Businesses looking to Expand Beyond their Current Capacity.”
Vehicle Registration Data for December 2019
Source: FADA Research
State wise Vehicle Registration Data for the Month of December 2019 with YoY comparison
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