Federation of Automobile Dealers Associations (FADA) released the monthly
vehicle registration data for the month of December 2020. The December
registrations for the first time in FY20-21 witnessed positive growth of 11%
(YoY) largely due to festival spill over demand and pre-buying due to
announcement of price hike in January’21.
2 wheeler, passenger vehicles (PV) and Tractor categories grew by 11.8%, 24%
and 35.5% (YoY) while commercial vehicles (CV) and three wheelers (3W)
continued to de-grow by -13.5% and -52.7% (YoY).
bring further clarity in CV registrations, FADA for the first time released a
split in CV category by introducing LCV, MCV and HCV wise registrations. Dealer
inventory continued to fall with PV inventory ranging from 15-20 days and 2W
inventory at 30-35 days. PV dealers continued to face supply side issues for
the 2nd straight month leading to higher waiting period as high as 8 months.
on the December’20 performance, FADA President 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 2nd straight month thus making waiting period as
high as 8 months in select OEM vehicles.”
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,” he added
Near Term Outlook
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.
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.
government’s approval for Rs. 12,000 crore infrastructure projects will see its
positive effects in the
space, though full recovery is only expected in all the segments of the
industry from April’21 onwards.
no further price hike shocks, demand spurring budget by the Central Government,
to fight the current and the new strain of virus with no/minimal side effects,
in its optimism for Auto Sales during last quarter of this fiscal year.
KEY FINDINGS FROM
OUR ONLINE MEMBERS SURVEY
44% dealers rated it as Good
39.3% dealers rated it as Neutral
16% dealers rated it as Bad
45.9% dealers rated it as Good
38.1% dealers rated it as Neutral
• 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
Average inventory for Passenger Vehicles ranges from 15 – 20 days
Average inventory for Two-Wheeler ranges from 30 – 35 daysChart showing Vehicle
Registration Data for December’20 with YoY comparison can be found below:
All India Vehicle Registration Data for
HERO MOTOCORP LTD
HONDA MOTORCYCLE &
SCOOTER INDIA (P) LTD
TVS MOTOR COMPANY LTD
BAJAJ AUTO LTD
SUZUKI MOTORCYCLE INDIA
INDIA YAMAHA MOTOR
CLASSIC LEGENDS (makers of Jawa)