Vehicle Registration Numbers Drops By 19.29% In November On Yearly Basis
Passenger vehicles and tractors drove the registration numbers during the 42-day festive season
Passenger vehicles and tractors have witnessed a growth in registrations during the 42 days of festive season in the country. According to the apex dealers body FADA, passengers vehicles and tractors clocked a registration growth of 48.7 per cent and 13.6 per cent, respectively, during the festive season when Indian prefers to add a new vehicle.
However, consumer vehicles and three-wheelers saw a bigger drop in registration at -22.29 per cent and -60.27 per cent. Two-wheelers continued to record registration in negative with -6.31 per cent despite two-wheeler manufacturers reported record breaking retail figures. This is because manufacturers typically share factory dispatched numbers which fail to grasp the consumer mood.
FADA notes that though the vehicle registration number continues to grow by 29.32 per cent on a month-on-month basis, it has dropped by 19.29 per cent on year-on-year basis. For November 2020, registration numbers for tractors and personal vehicles increased by 8.47 per cent and 4.17 per cent, respectively, whereas two-wheeler, consumer vehicles, and three-wheelers registration numbers dropped by -21.4 per cent, -31.22 per cent and -64.98 per cent year-on-year basis.
Commenting on how November 2020 performance, FADA president, 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 per cent on monthly basis. On yearly basis, the negative slide continues with a degrowth of.29 per cent.
He said that the 42-day festive period saw good traction in the current pandemic hit world as overall degrowth of.74 per cent was much less than expected.
Commenting on the two-wheelers sales, he said there continues to remain a demand shift from 100cc to 125cc and above due to good harvesting coupled with Dhanteras-Diwali and marriage season. The inventory level for two-wheeler vehicles is now at a high range of 45-50 days.
Small goods commercial vehicles continue to witness a growing demand, whereas demand for the bus continued to frail as schools continued to remain shut. Medium and heavy commercial vehicle segment also seems to face degrowth due to the expensive price tag of BS-VI vehicles, and finance issues with higher fuel rates.
The apex body said with the festive season concluded and heavy rains in some corners causing crop damage flanked with negligible pent-up demand, exciting year end schemes can only revive the demand in the automobile industry.