Vehicle registration in Oct less than same month of 2019. Here's possibly why
The Federation of Automobile Dealers Associations (FADA) on Monday informed that vehicle registration in the month of October had continued to increase month-on-month but that the figures when compared to the same month of 2019 reflect a very noticeable fall.
The previous month saw a number of launches in the Indian automobile sector and was rated as one of the best months for many in what has otherwise been a challenging 2020. The passenger vehicle segment, in particular, fared reasonably well with festive demand bolstering sales momentum. But FADA notes that there may have been several factors at play which meant that on a year-on-year basis, the figures weren't very heartening. These factors include lower discounts, supply-side mismatch which meant limited stock of high-selling products, and the fact that while both Navaratri and Diwali were in the same month of October in 2019, Diwali is on November 14 this year. “October continues to see positive momentum on monthly basis but on a yearly basis the negative slide continues to increase. The 9 days Navratri period witnessed robust vehicle registrations but could not save October to go in red as compared to last year when both Navratri and Diwali were in the same month," explained Vinkesh Gulati, FADA President.
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FADA also notes that entry-level motorcycles witnessed a lean demand in two-wheeler segment while medium and commercial heavy vehicles' segment continues to bleed. On the flip side, small commercial vehicles' segment is witnessing solid demand owing to local goods' transportation being back to pre-Covid levels. Higher disposable income in the rural sector is also powering demand for tractors.
|Category||October 2020||October 2019||YoY %|
|Source: FADA Research|
The path ahead may bring in more woes for the Indian automobile sector with FADA noting that the festive season is in its last leg and rising number of Covid-19 cases in the country making customers more cautious yet again.