Posted On : 20 Feb, 2020
As per the report of vehicle registration numbers shown by FADA (Federation of Automobile Dealers’ Association) mentions that almost 80% of the dealers have negative and/or neutral feelings and about 72% of the dealers are expecting the negative or flat growth even in the month of February too.
Auto Industry is still facing a slowdown in its way and is still taking a toll on the sales of the new vehicles as the customers’ feelings remain negative last month. According to the reports of vehicle registration numbers shown by FADA, the retail sales have been declined by approx 7 percent in the month of January 2020 by selling 1,750,116 units as compared to the selling units of 1,885,253 in the same time period of last year.
The sales of the passenger vehicles have been dropped by approx 5 percent with 290,879 units as compared to 304, 929 units sold in the same month last year.
This is for the first time when tractors have also been included as the category to cover the entire mobility spectrum which will then give a brief insight into the rural demand.
Mr. Ashish Harshraj Kale, President of FADA said that the auto sales continue to be in the negative region in the month of January 2020, except for the three wheelers and many of the customers are still not concluding on their decisions. One of the factors for delaying the purchase decision is the ongoing transition of BS-IV to BS-VI Emission Standard.
He also added that the overall weak financial sentiment continues and even the budget 2020, although inclusive finance with growth drivers for the mid to a long time, did not have any direct measures nor any on the spot growth spurring initiatives for the automobile sector.
FADA will also coordinate with the banks and the NBFCs to ensure the finance of BS-IV inventory until the Supreme Court of India has mandated the date of 31st March 2020. This is also to ensure the liquidation of the BS-IV stocks and the smooth transition to BS-VI Standard Norms without any financial implication to any stakeholder.