The automotive sector continued to move slowly in January 2020, with the total number of vehicle registrations falling 7.17% year-on-year, according to FADA data, indicating the continued decline in the sector.
With the exception of tricycles and tractors, all other segments saw a decrease based on monthly vehicle registration data published by the Federation of Automobile Dealers Associations (FADA).
According to the data, registrations for two-wheelers declined by 8.82% compared to the previous year, while registrations for passenger cars decreased by 4.61% and for commercial vehicles by 6.89%.
On the other hand, tricycle registrations grew by 9.17%, while tractor registrations rose by 5.11%.
It is the first time that tractors have been added to the list. "Car sales remain negative in January," said FADA President Ashish Harsharaj Kale.
"With the exception of tricycles, others suffered and many consumers still weren't making their purchasing decisions," he added.
"The ongoing transition from BS-IV to BS-VI is also a factor in late buying decisions." Mr Kale said that the overall weak economic sentiment in the market continues and "even the Union budget, although it includes an inclusive with growth drivers in the medium to long term, has had no direct action to drive the sector's growth."
“The past 14 months have been one of the hardest times in car sales. FADA has therefore used SIAM to ask OEMs to re-bill any BS-IV vehicle that does not violate a specific customer order in order to avoid financial loss for our members, ”said Kale.
He said the association would also coordinate with banks and NBFCs to ensure funding for the BS-1V inventory until the stock was liquidated before March 31 and the smooth transition to BS-VI with no financial impact on stakeholders.