The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of January’20.
January-20 Retail Sales
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 delayed purchase decision.
Overall Weak Economic sentiment continues and even the Budget 2020, although an inclusive budget with growth drivers for the mid to long term, did not have any direct measures nor any immediate growth Spurring initiatives for the Auto Sector.
For the first time FADA has given Registration Figures for the Tractor Segment, thereby covering the entire mobility spectrum. Tractor numbers will also give a brief insight into Rural Demand Situation.
FADA’s Appeal in SC for Extension of Sale beyond 31st of March for Dealer stock was not Considered by the Hon’ble Court. With the Weak Demand Situation, Liquidation of Complete BS-IV Inventory is the Top Focus for Us and FADA has already appealed to all OEM’s to Switch Over Completely to BS6 Despatches to Dealers.
The last 14 months has seen the one of its toughest times in auto sales. FADA has therefore requested our OEM’s through SIAM that any BS-IV Vehicle Billed further which are not against specific customer orders, to be on returnable basis to avoid financial loss to Our Members.
FADA will also Co-ordinate with Banks and NBFC’s to Ensure Financing of BS-IV Inventory till the SC mandated date of 31st of March to ensure Liquidation of the BS4 Stocks and Smooth Transition to BS6 without any Financial Implication to any stake holder.
With Continued weak consumer sentiment and the overall economic situation, as well as the Upcoming BS-VI Transition, the near-term Demand situation will continue to be dynamic. We appeal to the Government to continue announcing positive measure, specifically for the Auto Industry, as well as for the Overall Economy which will help us return to growth Trajectory at the earliest.”
Key Findings from our Online Members Survey
Sentiments
54% Dealers rated it Neutral (54% in December’19)
25% Dealers rated it Bad (25% in December’19)
21% Dealers rated it as Good (20% in December’19)
Liquidity
o 53% Dealers rated it Neutral (50% in December’19)
o 25% Dealers rated it Good (25% in December’19)
o 22% Dealers rated it as Bad (25% in December’19)
Expectation in February’20
o 38% Dealers rated it Flat
o 34% Dealers rated it De-Growth
o 28% Dealers rated it Growth
Inventory
o Average inventory for PVs ranges from 15 – 20 days (20 – 25 days in December’19)
o Average inventory for 2W ranges from 25 – 30 days (30 – 35 days in December’19)
o Average inventory for CV ranges from 25 – 30 days (30 – 35 days in December’19)
January-20 Retail Sales
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 delayed purchase decision.
Overall Weak Economic sentiment continues and even the Budget 2020, although an inclusive budget with growth drivers for the mid to long term, did not have any direct measures nor any immediate growth Spurring initiatives for the Auto Sector.
For the first time FADA has given Registration Figures for the Tractor Segment, thereby covering the entire mobility spectrum. Tractor numbers will also give a brief insight into Rural Demand Situation.
FADA’s Appeal in SC for Extension of Sale beyond 31st of March for Dealer stock was not Considered by the Hon’ble Court. With the Weak Demand Situation, Liquidation of Complete BS-IV Inventory is the Top Focus for Us and FADA has already appealed to all OEM’s to Switch Over Completely to BS6 Despatches to Dealers.
The last 14 months has seen the one of its toughest times in auto sales. FADA has therefore requested our OEM’s through SIAM that any BS-IV Vehicle Billed further which are not against specific customer orders, to be on returnable basis to avoid financial loss to Our Members.
FADA will also Co-ordinate with Banks and NBFC’s to Ensure Financing of BS-IV Inventory till the SC mandated date of 31st of March to ensure Liquidation of the BS4 Stocks and Smooth Transition to BS6 without any Financial Implication to any stake holder.
With Continued weak consumer sentiment and the overall economic situation, as well as the Upcoming BS-VI Transition, the near-term Demand situation will continue to be dynamic. We appeal to the Government to continue announcing positive measure, specifically for the Auto Industry, as well as for the Overall Economy which will help us return to growth Trajectory at the earliest.”
Key Findings from our Online Members Survey
Sentiments
54% Dealers rated it Neutral (54% in December’19)
25% Dealers rated it Bad (25% in December’19)
21% Dealers rated it as Good (20% in December’19)
Liquidity
o 53% Dealers rated it Neutral (50% in December’19)
o 25% Dealers rated it Good (25% in December’19)
o 22% Dealers rated it as Bad (25% in December’19)
Expectation in February’20
o 38% Dealers rated it Flat
o 34% Dealers rated it De-Growth
o 28% Dealers rated it Growth
Inventory
o Average inventory for PVs ranges from 15 – 20 days (20 – 25 days in December’19)
o Average inventory for 2W ranges from 25 – 30 days (30 – 35 days in December’19)
o Average inventory for CV ranges from 25 – 30 days (30 – 35 days in December’19)
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