Mumbai, November 09, 2020.
The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for the Month of October’20.
Commenting on how October’20 performed, FADA President, Mr. Vinkesh Gulati said, “October continues to see positive momentum on monthly basis but on a yearly basis the negative slide continues to increase. The 9 days Navratri period witnessed robust vehicle registrations but could not save October to go in red as compared to last year when both Navratri and Diwali were in the same month.
While new launches continued to be in demand in Passenger Vehicle segment, entry level motorcycles witnessed a lean demand in 2-Wheeler segment. With supply side mismatch, most of the passenger vehicle dealers ended with limited stock of high selling items and odd variants which did not attract much demand. This coupled with lower discounts, compared to last festivals also played a spoilsport.
While Small Commercial Vehicles are seeing robust demand due to local goods transportation back to pre-covid levels, the Medium and Heavy Commercial Vehicles segment continued to bleed. FADA urges the Government to urgently announce an attractive incentive based Scrappage Policy. It also requests the Government to release funds for infrastructure projects which it has awarded as this will help demand generation and will lead to higher production of vehicles.
The Government’s continued procurement of Kharif crops at MSP from farmers is leading to a higher disposable income in rural India. This continues to show robust demand in Tractor segment which grew at a healthy 55% YoY.”