NEW DELHI: Total vehicle registration, an indication of retail auto sales, fell 19 per cent in November to 18.28 lakh units as against 22.65 lakh units in the same month last year. The fall was led by subdued demand for two-wheelers as registration in this segment fell by over 21 per cent y-o-y to 14.13 lakh units, showed data released by the Federation of Automobile Dealers Associations (FADA).
In November, tractors and passenger vehicle (PV) retail sales grew by 8.47 per cent (49,313 units) and 4.17 per cent (2,91,001) year-on-year, respectively. Commercial vehicle and three-wheeler sales declined by 31.22 per cent (50,113) and 65 per cent (24,185) year-on-year.
However, month-on-month, vehicle registration grew by over 29 per cent in November as demand across categories remained high during the Dhanteras-Diwali period than the Navratri period. FADA said year-end discounts will play a major role in keeping momentum alive in December.
“With the festive season now over, heavy rains in certain parts of the country leading to crop damage and pent-up demand almost negligible, sales revival now solely depends on exciting year end schemes. If the supply chain issues in the PV segment are controlled, we may see continued growth in December,” FADA said in a statement.
Commenting on the figures, Care Ratings said, “Comparison on a YoY basis shows that the retail sales of automobiles are at nearly 80 per cent of last year’s levels, which reflects an impressive recovery of the
sector in a pandemic year.” However, reaching pre-covid levels of sales seems improbable in FY21, as consumer demand for automobiles is expected to stagnate in Q4-FY21. The festive season has nearly ended and hence, near term demand for automobiles will depend on how quickly the economy progresses and lifts consumer incomes, it added.