year 2021 seems to have not begun on a right note for the Indian automobile
industry when it comes to domestic sales. After showing a one-time YoY growth
in December, 2020, January 2021 registrations once again fell by minus (-) 9.66%,
according to a press release issued by the Federation of Automobile Dealers
FADA released the monthly vehicle registration data
for January 2021.
categories of vehicles, except tractors were in red. On a YoY basis, two-wheelers
(2W), three-wheelers (3W), Commercial Vehicles (CV) and Passenger Vehicles (PV)
fell by -8.78%, -51.31%, -25% and -4.46% respectively. Tractor sales continued
its upbeat momentum with a YoY growth of 11.14%.
has stated that the January registrations were in the negative zone because of
factors like non-availability of vehicles due to scarcity of semiconductors, a
fading pent-up demand and recent price hikes coupled with no festivities and
dealer inventory for PVs continued to fall and came down in range of 10-15 days,
inventory of two wheelers stayed put at 30-35 days.
President Vinkesh Gulati said, “After witnessing a one off growth in December,
January auto registrations fell once again by minus (-)10% YoY. Auto Industry clearly
misjudged the demand which returned post lockdown. Industry’s underestimation
of post covid rebound along with chipmakers prioritising higher-volume and more
lucrative consumer electronics market has created a vacuum for semiconductors.
This has resulted in shortage in supply for all categories of vehicles
especially passenger vehicles even though enquiry levels and bookings remained
high. New launches and SUV’s continued to see high traction and helped in
restricting the overall PV registrations fall by a bigger margin.”
recent price hike undertaken by Auto OEMs also added to the woes as 2 wheelers have
become more expensive for lower and middle income class. Commercial Vehicle
registrations were also hit due to vehicle financing still not back to normal
and high BS-6 cost.”
NEAR TERM OUTLOOK
maintained that the finer contours of the Vehicle Scrappage Policy as announced
in the Union Budget 2021-22 will decide its attractiveness and popularity. This,
including the Budget announcement to induct more buses in public transport, increased
infrastructure spending and building National Highways will play a pivotal role
in reviving the commercial vehicles segment
over a longer period of time.
year, the auto industry was transitioning from BS-4 to BS-6 during Q4 FY’21.
This saw huge discounts leading to higher sales and registrations. With a high
base and continued shortage of semiconductors on one hand and gradual opening
of academic institutes and business as usual along with Covid Vaccine’s effectiveness
on the other, FADA continues to remain guarded in its optimism for auto
registrations during Q4 of this financial year.
Minus (-) 8.78%
Minus (-) 51.31%
Minus (-) 14.17%
Minus (-) 26.44%
Minus (-) 9.66
Source: FADA Research
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 07.02.21 and in collaboration with Ministry of
Road Transport &
Highways, Government of
India and has been gathered from 1,273 out of 1,480 RTOs.
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