Mon. Jun 17th, 2019

The Times of Bengal

মানুষের সাথে, মানুষের পাশে

F A D A releases May’19 Vehicle Registration Data

The Federation of Automobile Dealers Associations (F A D A) today released the Monthly Vehicle Registration Data for the Month of May’19.

MAY-19 Retail Sales

Commenting on May’19 performance, F A D A President, Mr Ashish Harsharaj Kale said, “Even though on a MoM basis, there was an uptick in Vehicle Registrations, all categories of Vehicles de-grew when compared on YoY basis. It should also be noted that May last year had a very high base and had witnessed 2nd highest registrations on a monthly basis in the last fiscal.”

Bringing further Transparency to the Sales and Registrations of Automobiles, F A D A is also sharing State wise registration numbers, beginning this month.

F A D A for the first time is publishing State Wise Vehicle Registration Details and going forward it will be a regular feature of our Press Release with Further Detailing in the near future. Detailed State wise registration details can be found in Annexure 1 on Page 05.

A Few Highlights of the Vehicle Registrations for the month of May are mentioned below:

  • Overall the States with Highest Vehicle Registrations were Uttar Pradesh (2,81,175), Maharashtra (1,99,509) and Tamil Nadu (158,433)
  • In PV Category, the States with highest registrations were Uttar Pradesh (34,249), Maharashtra (31,871) and Gujarat (21,929)
  • In 2W Category, the States with highest registrations were Uttar Pradesh (2,36,713), Maharashtra (1,51,265) and Tamil Nadu (1,31,092)
  • In 3W Category, the States with highest registrations were Maharashtra (8,520), Uttar Pradesh (7,649) and Gujarat (5,791)
  • In CV Category, the States with highest registrations were Maharashtra (7,853), Tamil Nadu (6,676) and Gujarat (4,923)
  • In Total Vehicle Registrations, Arunachal Pradesh registered highest YoY growth of 31% while West Bengal registered highest YoY degrowth of -27%
  • In PV category, Chhattisgarh registered highest YoY growth of 36% while Manipur registered highest YoY degrowth of -25%
  • In 2W category, Sikkim registered highest YoY growth of 67% while Haryana registered highest YoY degrowth of -30%
  • In CV category, Goa registered highest YoY growth of 48% while Jharkhand registered highest YoY degrowth of -45%

Dealer Inventory

We would once again express our serious concern on the increase of 2W inventory despite such difficult times and F A D A appeals to our 2W OEM’s to kindly regulate the same. We would also like to Applaud and place on record our Appreciation  for Honda Motorcycle and Scooter India Pvt. Ltd. for  being the 1st 2W OEM to have reduced their Dealer Inventory to an average of 30 days by having taken unprecedented wholesale billing reduction in the last 90 days and moving towards the F A D A requested and recommended norm of 21 days.

Production cut being a painful decision for the entire Auto Eco System, F A D A appreciates the Bold decisions taken by our PV OEM’s on Cutting back on production for reduction of Dealer Inventory.

We would also like to Applaud and Place on record our Appreciation for Tata Motors PV division for being the Pioneer amongst the PV OEM’s to Officially announce a move towards FADA requested and recommended norm of 21 days of Dealer Inventory by September along with a Shift in Dealer Market Share calculation by Retail Sales.

High Inventory at this juncture is an Added Liability on the Auto Dealers especially when the current environment is witnessing Negative Sales Growth combined with Extremely Tight Working Capital Availability for the Auto Retail Sector. We acknowledge and Appreciate the Steps taken by Most of Our Principals for moving towards new Inventory Norms for Sustained Dealer Survival and Profitability.

F A D A has been and will continue to request and recommend that the Entire Auto Industry and all our OEM’s move to 21 days of inventory as well as adopt the Globally Practised Norm of Market Share Calculation by Registration Data.

Near Term Outlook

The Current situation continues to be worrisome and Consumer Sentiment continues to be Negative. With Liquidity still an issue and the New Government getting settled and in the process of planning and rolling out New Initiatives coupled with Delay in monsoon by 10-12 days, we expect the near term outlook of the next 4-6 weeks to be similar to last month with Overall Auto Retails Continuing to be under Strain across all Verticals

Liquidity

On the Liquidity front Mr Kale Commented, “Dealer Liquidity continues to be Negative and Extremely Tight. A  very slight easing of Overall Liquidity can be felt although it continues to be Tight and nowhere near the normal required to stabilise the Degrowing Auto Sales. The CRR reduction by the RBI has not seen a reduction in Interest Rates at the Retail Level, but the Change in Monetary Stance from Neutral to Accommodative will definitely act as a Facilitator for the Banking and Financing System moving back to a Positive approach with regards to the Auto Retails Sector, both for the Consumer as well as the Dealer community”

On the Long-Term Outlook, F A D A President commented, “As already emphasised earlier, the Long Term Growth Story of Our Nation is Extremely Robust and has been further Strengthened by a Popularly Elected Majority Government led by Prime Minister Shri Narendra Modi which will bring Continuity and Stability to Policy Making along with Continued Focus on Infrastructure Development and Agricultural Prosperity. A growing Nation heading towards Global Leadership is best served by the Automobile Industry for its needs of Mobility, Infrastructure Building and  Ever Growing Aspiration of its People.

The Long-Term Outlook for the Auto Industry and therefore the Auto Dealership Community continues to be very Strong and Positive, Despite the Current Prolonged Slowdown.

An accommodative RBI, an Expected Progressive Budget, an Average Monsoon and an Overall Stability to Consumer Sentiment due to Political Stability will all Contribute towards the Auto Industry heading back into the growth Phase once again and FADA is Confidently Hopeful of that Happening in the next 8-10 Weeks.’’

Key Findings from our Online Members Survey

  • On the Current Sentiments of the Industry
    • 54% Dealers rated it as Neutral (42% in April’19)
    • 43% Dealers rated it as Bad (51% in April’19)
  • On the Liquidity Front
    • 57% Dealers rates it as Neutral (47% in April’19)
    • 36% Dealers rated it as Bad (39% in April’19)
  • On the Current Inventory Front
    • Average inventory for PVs ranges from 35-40 days (40-45 days in April’19)
    • Average inventory for 2W ranges from 55– 60 days (45-50 days in April’19)
    • Average inventory for CV ranges from 45 – 50 days (45-50 days in April’19)

A Chart showing Vehicle Registration Data can be found below:

CategoryMay’19May’18Apr’19YoY (%)MoM (%)
2W14,07,361    15,40,377    13,25,845 -8.6%6.1%
3W  50,959         53,108         48,146 -4.0%5.8%
CV62,551         67,847         64,019 -7.8%-2.3%
PV 2,51,049      2,53,463      2,50,501 -1.0%0.2%
Total17,71,920    19,14,795    16,88,511 -7.5%4.9%

Source: F A D A Research

Disclaimer: Vehicle Registration Data has been collated in collaboration with Ministry of Road Transport & Highways, Government of India and has been gathered from 1,171 out of 1,443 RTOs.

Online Survey has a limited sample size and reflects an overall trend.

Kerala has moved to VAHAN Platform completely only Last Month and Comparative Figures are not available.

NA = Not Available due to Technical Reasons

Annexure 1

State wise Vehicle Registration Data for the Month of May-19

CategoryARUNACHAL PRADESH
May’19May’18Apr’19YoY change (%)MoM change (%)
2W1,5451,0211,21651.3%27.1%
3W22815175.0%46.7%
CV13510210032.4%35.0%
PV535571502-6.3%6.6%
Total2,2371,7021,83331.4%22.0%
CategoryASSAM
May’19May’18Apr’19YoY change (%)MoM change (%)
2W37,36733,19132,89112.6%13.6%
3W2,6101,9371,98634.7%31.4%
CV4,2064,5463,327-7.5%26.4%
PV6,1446,1275,8330.3%5.3%
Total50,32745,80144,0379.9%14.3%
CategoryBIHAR
May’19May’18Apr’19YoY change (%)MoM change (%)
2W1,16,0461,18,33490,273-1.9%28.6%
3W3,5133,1773,59310.6%-2.2%
CV4,7588,3045,025-42.7%-5.3%
PV4,8566,3394,835-23.4%0.4%
Total1,29,1731,36,1541,03,726-5.1%24.5%
CategoryCHANDIGARH
May’19May’18Apr’19YoY change (%)MoM change (%)
2W2,1092,4912,212-15.3%-4.7%
3W263130-16.1%


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