The Federation of Automobile Dealers Associations (FADA) has released the vehicle registration data for the month of February 2020. The total number of vehicles registered in the country was 17,11,711 units, witnessing a growth of 2 per cent, in comparison to 16,68,268 units in the corresponding month last year. Commenting on the auto industry performance, FADA President, Mr Ashish Harsharaj Kale said, "February turned positive for retail sales for most of the segment as the entire auto ecosystem, especially auto dealers, focused on liquidation of their BS4 stocks. Rural sales contributed for retail sales turning green with tractors also being in double digit growth for 2nd month in a row."
Total passenger vehicle registrations for the month of February 2020 stood at 2,26,271 units, seeing a de-growth of 1.17 per cent during the same month last year. On the other hand, Two-wheelers witnessed total registrations of 12,85,398 vehicles, 1.52 per cent growth in comparison to the 12,66,163 two-wheelers in the same month last year.
The overall retail sales were below expectations as the pre-buying for the BS4 stocks didn't see a major attraction. Several buyers held their purchasing decision towards the end of March, eyeing sweeter deals. The two-wheeler inventory of BS4 vehicles remains a major concern for FADA.
Additionally, the BS6 vehicles supply is also affected due to the Corona virus situation in China, that has already created a difficult situation for the auto industry. Considering all these aspects, the outlook for the month of March is negative.
FADA says that the average inventory for PVs ranges from 10 - 12 days, for two-wheelers it ranges from 20 - 25 days and for CVs it ranges from 10 - 15 days.