FADA Releases December’20 Vehicle Registration Data

365telugu.com online news,NewDelhi,11^thJanuary, 2021:The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the month of December’20.

December’20 Registration

Commenting on how December’20 performed, FADA President, Mr. Vinkesh Gulati said, “Automobile registrations for the first time witnessed YoY growth in this Financial Year by growing 11% in the month of December. A good crop season, better offers in 2W segment, new launches both in PV as well as 2W and a fear of price increase in the month of January kept the demand going. Supply side issues in passenger vehicles continued for the 2^nd straight month thus making waiting period as high as 8 months in select OEM vehicles.The CV segment continues to see demand pressure even though on YoY basis the segment fell by 13.5% due to lower base. Increased intra-city goods movement continued to help SCV’s outperform M&HCV segment as Axle load norms, increased fuel & vehicle cost and higher freight rates continued to play spoilsport.Tractor continues to outshine supply for 6 straight months further confirming the fact that Bharat carries on to lead India’s economic recovery.”

The Commercial Vehicle Segment

With an aim to continuously bring transparency in Auto Retails, FADA for the first time is releasing a further split in vehicle registration data by introducing Small, Medium and Heavy Commercial Vehicle registration details under the Commercial Vehicle category.This will not only help in understanding Commercial Vehicle data better but will also help all the stakeholders viz., Suppliers, OEMs, Banks/NBFC and Dealers get real time demand status thus helping them in better planning.

Near Term Outlook

While December saw good spill over demand continuing from festive season and pre-buying due to price hike announcement, demand for vehicles in January looks to be bleak. PV may witness growth if demand supply mismatch is resolved. With recent hikes announced by all OEMs, FADA expects a temporary blip in demand  as customers will take time to absorb the same.India’s new vaccination program is now in place. This will help Indians in increasing their mobility, restoring life back to normalcy and business as usual. With gradual opening up of educational institutes/colleges, organic demand for 2-wheelers should slowly start coming back.

The government’s approval for Rs. 12,000 crore infrastructure projects will see its positive effects in the CV space, though full recovery is only expected in all the segments of the industry from April’21 onwards. With no further price hike shocks, demand spurring budget by the Central Government, Covid vaccine’s effectiveness to fight the current and the new strain of virus with no/minimal side effects, FADA remains guarded in its optimism for Auto Sales during last quarter of this fiscal year.

Key Findings from our Online Members Survey

• Sentiments
  • 44% dealers rated it as Good
  • 39.3% dealers rated it as Neutral
  • 16% dealers rated it as Bad

• Liquidity
  • 45.9% dealers rated it as Good
  • 38.1% dealers rated it as Neutral
  • 16% dealers rated it as Bad

• Expectation in January
  • 45.5% dealers rated it as Growth
  • 37.4% dealers rated it as Flat
  • 17.1% dealers rated it as De-growth

• Inventory
  • Average inventory for Passenger Vehicles ranges from 15 – 20 days
  • Average inventory for Two-Wheeler ranges from 30 – 35 days

Chart showing Vehicle Registration Data for December’20 with YoY comparison can be found below:

All India Vehicle Registration Data for December’20

Source: FADA Research

Disclaimer:

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Registration Data has been collated as on 09.01.21 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,270 out of 1,477 RTOs.
3. CV is subdivided in the following manner
   1. LCV – Light Commercial Vehicle (incl. Passenger & Goods Vehicle)
   2. MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
   3. HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
   4. Others – Construction Equipment Vehicles and others

Category-wise market share can be found in Annexure 1, Page No. 04

About FADA India

Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~4 million people at dealerships and service centres.FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.

Annexure 1

OEM wise Market Share Data for the Month of December’20 with YoY comparison

Source: FADA Research

Disclaimer:

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Registration Data has been collated as on 09.01.21 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,270 out of 1,477 RTOs.

Source: FADA Research

Disclaimer:

1. The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
2. Vehicle Registration Data has been collated as on 09.01.21 and in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,270 out of 1,477 RTOs.