FADA Releases November’20 Vehicle Registration Data

New Delhi: The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the month of November’20.

Commenting on how November’20 performed, FADA President, Mr. Vinkesh Gulati said, “Automobile Industry has seen one of the best recovery rates since unlocking began as November continues to see positive momentum by growing 29.32% on MoM basis. On YoY basis, the negative slide continues with degrowth of -19.29%.

The 42-days festive period saw good traction in the current pandemic hit world as overall degrowth of -4.74% was much less than expectation. While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras – Diwali period. Tractor segment continued to gallop ahead. The fear of pandemic leading to safer means of travel for the entire family saw good sales in Passenger vehicles as it grew in double digits at 13.6%.

New launches and specially compact SUV’s continued to show good demand in PV segment. The focus in 2W continued its shift from 100cc to 125 cc and above category due to good harvesting coupled with Dhanteras-Diwali and Marriage Season.

Small Goods Commercial Vehicles continued to see good demand with increased level of transportation and last mile connectivity needs. With safer means of travel in customer’s mind and schools and colleges continued to remain closed, demand of Bus remains weak. Similarly, M&HCV segment continues to play spoilsport with excessive capacity, high prices of BS-6 models, finance issues and higher fuel prices.

FADA once again urges our Government to increase infrastructure spending including timely payment to vendors and introduce attractive incentive based scrappage policy to revive the M&HCV segment.”

Near Term Outlook

With festive season now over, heavy rains in certain parts of the country leading to crop damage and pent-up demand almost negligible, demand revival now solely depends on exciting year end schemes. If the supply chain issues in PV segment is controlled, we may see continued growth in December.

FADA once again cautions 2W OEMs and Dealers to keep a check on vehicle inventory as post festivals, demand may remain subdued.

Key Findings from our Online Members Survey

· Sentiments

o 44.6% dealers rated it as Good

o 41.6% dealers rated it as Neutral

o 13.8% dealers rated it as Bad

· Liquidity

o 45.2% dealers rated it as Good

o 42.2% dealers rated it as Neutral

o 12.6% dealers rated it as Bad

· Expectation in December

o 39% dealers rated it as Flat

o 36.1% dealers rated it as De-Growth

o 24.9% dealers rated it as Growth

· Inventory

o Average inventory for Passenger Vehicles ranges from 25 – 30 days

o Average inventory for Two-Wheeler ranges from 45 – 50 days