The Federation of Automobile Dealers Associations (FADA) today released the Monthly Vehicle Registration Data for January’21.
Commenting on how January’21 performed, FADA President, Mr. Vinkesh Gulati said, “After witnessing a one off growth in December, January Auto Registrations fell once again by ~10% YoY. Auto Industry clearly misjudged the demand which returned post lockdown. Industry’s under estimation of post-covid rebound along with chipmakers prioritizing 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.
The recent price hike undertaken by Auto OEMs also added to woos as Two Wheeler 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
The first budget of this decade stressed on making India an Aatmanirbhar Bharat. Union Budget 2021 finally brought smile for Auto Industry as its age old demand of bringing Vehicle Scrappage Policy (voluntary) saw light of the day. The final contours of the policy though awaited, will decide its attractiveness and popularity. This including announcement to induct more buses in public transport, increased infrastructure spending and building National Highways will play a pivotal role in reviving Commercial Vehicles segment over a longer period of time.
Last 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.
Key Findings from our Online Members Survey
46% dealers rated it as Good
35.3% dealers rated it as Neutral
18.8% dealers rated it as Bad
45.6% dealers rated it as Good
38.2% dealers rated it as Neutral
16.2% dealers rated it as Bad
Expectation in February
41.1% dealers rated it as Growth
34.6% dealers rated it as Flat
24.3% dealers rated it as De-growth
Average inventory for Passenger Vehicles ranges from 10 – 15 days
Average inventory for Two-Wheeler ranges from 30 – 35 days
Chart showing Vehicle Registration Data for January’21 with YoY comparison can be found below:
All India Vehicle Registration Data for January’21
Source: FADA Research
The above numbers do not have figures from AP, MP, LD & TS as they are not yet on Vahan 4.
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.
MCV – Medium Commercial Vehicle (incl. Passenger & Goods Vehicle)
HCV – Heavy Commercial Vehicle (incl. Passenger & Goods Vehicle)
Others – Construction Equipment Vehicles and others
About FADA India
Founded in 1964, Federation of Automobile Dealers Associations (FADA), is the apex national body of Automobile Retail Industry in India engaged in the sale, service and spares of 2/3 Wheelers, Passenger Cars, UVs, Commercial Vehicles (including buses and trucks) and Tractors. FADA India represents over 15,000 automobile dealers having 26,500 dealerships including multiple Associations of Automobile Dealers at the Regional, State and City levels representing the entire Auto Retail Industry. Together we employ ~4 million people at dealerships and service centres.
FADA India, at the same time also actively networks with the Industries and the authorities, both at the Central & State levels to provide its inputs and suggestions on the Auto Policy, Taxation, Vehicle Registration Procedure, Road Safety and Clean Environment, etc. to sustain the growth of the Automobile Retail Trade in India.