It looks like the slowdown in the Automobile sector has still not improved. The Federation of Automobile Dealers Associations (FADA) has released Monthly Vehicle Registration Data for the month of January 2020. The report shows that the overall vehicle registration have gone down significantly compared to 2019.
The data shows that the overall registrations have dropped by 7.17% compared to January 2019. 2-Wheeler was down by 8.82%, PV was down by 4.62% and CV registered a de-growth of 6.89%. However, on the other hand, 3-Wheeler and Tractors were up by 9.17% 5.11% respectively. Only Chandigarh (64.62%), Sikkim (43.85%) and Dadra & Nagar Haveli (26.66%) reported growth. It also comments that the Budget 2020, although an inclusive one, had no direct measures for immediate growth in the Auto Sector.
Commenting on how January’20 performed, FADA President, Mr. Ashish Harsharaj Kale said, “Auto sales continue to be in the negative territory in the month of January, except for 3W, with many consumers still not concluding on their decisions. Ongoing Transition of BS-IV to BS-VI is also a factor in a delayed purchase decisions.”
FADA believed that the ongoing transition from BS-IV to BS-VI standards is also significantly contributing to the market slowdown. They are also coordinating with Banks and NBFC’s to ensure financing of BS-IV vehicles till the Hon’ble SC mandated deadline of 31st Mar’20 to ensure liquidation of BS-IV stocks.
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