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Automotive Product Finder Magazine | Vehicle sales continues Negative trend: FADA
Vehicle sales continues Negative trend: FADA
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FADA’s survey conducted in December 2019 pointed out that 54 per cent of dealers rated it neutral, 25 per cent rated it bad and 21 per cent rated it as good.
The Federation of Automobile Dealers Associations (FADA) released the vehicle registration data for the Month of January 2020. Commenting on January 2020 performance, Ashish Harsharaj Kale, President, FADA 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 after 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 Supreme Court for extension of sale beyond March 31, 2020 for dealer stock clearance 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 BS VI despatches to dealers.
Vehicle Registration Data for January 2020
Category-Jan 20-Jan 19-YoY %
FADA also stated, “The last 14 months has seen the one of its toughest times in auto sales. FADA has therefore requested our OEM’s through Society of Indian Automobile Manufacturers (SIAM) that any BS IV vehicle billed further the set deadline of March 2020 which is 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 BS IV stocks and smooth transition to BS VI without any financial implication to any stake holder.
FADA’s official communiqué also observed, “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 measures, specifically for the auto industry, as well as for the overall economy which will help us return to growth trajectory at the earliest.”
Federation Of Automobile Dealers Associations
Indian Automobile Manufacturers
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