According to latest monthly vehicle registrations report by FADA, overall vehicle registrations witnessed a two percent growth - however, the CV segment slumped by 8%
The Federation of Automobile Dealers Association (FADA) has released monthly vehicle registration data for November 2019 that depicts a clear spillover of festive season demand. For the second consecutive month, vehicle registrations have remained in the green with commercial vehicle segment being the only exception.
Overall the vehicle registrations rose by 2 % in which registrations in the two-wheeler segment increased by 3 % and registrations in the three-wheeler segment grew by 20 %. The passenger vehicle (PV) segment posted somewhat flat figures at 1 % growth, however the commercial vehicle segment registrations posted a de-growth of 8 %. On the inventory front, both PV and two-wheeler inventories remained in a similar range as reported in October whereas CV inventory has further reduced by 5 days. The FADA stressed that inventory of no more than three weeks is the optimum range for all sectors for sustainability.
According to FADA, liquidity and credit confidence for retail customers as well as dealers were still not close to the levels required for a sustained growth. The banking and finance industry are still at the cross-roads of business aggression and business caution, despite strong advocacy of retail credit growth by the government, it stated.
The FADA is hopeful of a positive retail growth even extending till December and further inventory reduction before the calendar year ends. The FADA has further stated that it will continue to engage with all stakeholders for a smoother transition into the BS 6 regime for its members and will explore all available avenues to ensure zero financial loss to its members.