📺 Stream EntrepreneurTV for Free 📺

Vehicle Registration Drops By 9.66% In January On Yearly Basis Non-availability of vehicles due to scarcity of semiconductors, a fading pent-up demand and recent price hikes coupled with no festivities and auspicious days landed January registrations in negative zone

By Debarghya Sil

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


After showing a one-time Year-on-Year (YoY) growth in December, vehicle registrations once again fell by 9.66 per cent for the month of January. Federation of Automobile Dealers Associations (FADA), the apex national body of Automobile Retail Industry in India in its report for the month of January said that on YoY basis sectors such as two wheeler, three-wheeler, consumer vehicle and private vehicle. However, the tractor continued to show its strong growth.

Two-wheeler, three-wheeler, consumer vehicle and private vehicle registration fell by 8.78 per cent, 51.31 per cent, 25 per cent and 4.46 per cent. Tractor clocked its growth rate at 11.14 per cent.

It is to be noted that these numbers are not the wholesale number released by manufacturers which fails to grab the mood of the consumer.

Commenting on the performance of the automobile sector in the first month of the year, Vinkesh Gulati, president of FADA said, "Auto Industry clearly misjudged the demand which returned post lockdown. Industry's under estimation of post-covid rebound along with chipmakers prioritizing higher-volume and more lucrative consumer electronics market has created a vacuum for semiconductors. This has resulted in shortage in supply for all categories of vehicles especially Passenger Vehicles even though enquiry levels and bookings remained high."

He further added that new launches and SUV's were seeing a high traction and prevented the fall of private vehicle registrations by high margin.

The price hike by Auto OEMs has further dented the pocket of lower and middle income class families who were eyeing to purchase two-wheelers. Commercial Vehicle registrations were also hit due to vehicle financing still not back to normal and high BS-6 cost.

Debarghya Sil

Entrepreneur Staff

Former Correspondent


7 Ways You Can Use AI to 10x Your Leadership Skills

While technology can boost individual efficiency and effectiveness, it's essential to balance their use with human intuition and creativity to avoid losing personal connection and to optimize workplace satisfaction.

Business News

James Clear Explains Why the 'Two Minute Rule' Is the Key to Long-Term Habit Building

The hardest step is usually the first one, he says. So make it short.


Franchising Is Not For Everyone. Explore These Lucrative Alternatives to Expand Your Business.

Not every business can be franchised, nor should it. While franchising can be the right growth vehicle for someone with an established brand and proven concept that's ripe for growth, there are other options available for business owners.


How Mindset Plays a Role in Your Entrepreneurial Success

Don't overlook the importance of mindset when you're starting or growing a business.


Why Companies Should Prioritize Emotional Intelligence Training Alongside AI Implementation

Emotional intelligence is just as important as artificial intelligence, and we need it now more than ever.

Business News

Elon Musk Tells Investors Cheaper Tesla Electric Cars Should Arrive Ahead of Schedule

On an earnings call, Musk told shareholders that Tesla could start producing new, affordable electric cars earlier than expected.