Overall vehicle sales continue to be negative: FADA

By
Team NB
-
www.newsbarons.com

July Sales continue to be negative YoY, but positive hope building up for the festive season with monsoon revival, improving liquidity and serious intervention and action expected from Government towards demand improvement.

The Federation of Automobile Dealers Associations (FADA) released the Monthly Vehicle Registration Data for the Month of July’19.

Highlight:

• For the month of July and on YoY basis, Overall sales continued to be negative at -6% with 2W at a de-growth of -5%, PV by -11% and CV at -14%.
• Positive Growth seen on a MoM basis, with overall sales up by 5% as June’19 had the 2ndlowest Volume base this CY after February. Postponement of demand seen in June due to Deficient Rainfall concluded in July, after onset and even spread of monsoon, and slight Liquidity improvement seen towards July end in Banking system contributed also, towards this MoM uptick in Sales.
• PV inventory levels reduces further andcomes closer to FADA’s proposed 21 days inventory.CV inventorycontinues to be atHigh levels.Very Slight reduction seen in 2W inventory Levels and they continue to remain at very high levels and a serious cause of concern for Dealers.
• H’ble Finance Minister meeting with Auto Industry, followed by immediate action on Retail Lending Push for Banks and NBFC, a point strongly advocated by FADA and a strong positive statement from Hon. Prime Minister on the Auto Industry and indication of Stimulus for Demand Generation and Growth Revival of the Economy coupled with a Revival of the Monsoonbuilds Positive Hope amongst Dealer for Festive Season,Despite the current Lack of Demand and Weak Consumer Sentiment.

July-19 Retail Sales

Commenting on July’19 performance, F A D A President, Ashish Harsharaj Kale said “Consumer Sentiment and Overall Demand Continued to be quite weak across all segments and most geographies. The July sales continue to be in the Negative zone YoY.Although Some respite seen with growth in MoM numbers which was mainly due to Revival of the Monsoon bringing some Positivity and also June having the 2ndLowest Volume Base this Calendar Year after February.With June being a completely dry and rain deficient month,Consumer Sentiment was at its lowest and with July rains covering up a lot of the deficit,some confidence in consumer demand led to pending purchase conclusion in July.Despite these Factors CV Sales Continued to be in the Negative even MoM.”

Category July’19 July’18 June’19 YoY (%) MoM (%)
2W        13,32,384        14,03,382      12,78,254 -5% 4%
3W             55,850             54,250           46,211 3% 21%
CV*             23,118             26,815           28,478 -14% -19%
PV**          2,43,183          2,74,772        2,28,198 -11% 7%
Total        16,54,535        17,59,219      15,81,141 -6% 5%

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