Chennai: The Federation of Automobile Dealers Associations (FADA) releasing the monthly vehicle registration data for the month of December 2018, stated that auto sles are still in choppy waters.
According to FADA data, registrations of two-wheelers on a y-o-y basis were up by 11 per cent in December last year, while passenger vehicles (PV) or cars saw a decline of about three per cent.
For the current financial year upto 31 December, registrations of two-wheelers were up by five per cent and that of PVs went down by two per cent, the data read.
FADA stated that with fuel levels coming down, initiatives taken by policy makers will ease the overall situation and the positive results of which will be felt in the current and last quarter of the fiscal year.
The study stated that moderation in wholesale billing in the month, along with good retail sales helped reduce the high PV inventory. It added that the CV inventory reduced slightly in the month of December last year but continues to be above normal.
It however stated that two-wheeler dealers have very high inventory and similar steps like those taken by PV OEMS will be taken by two-wheeler OEMs to address the situation.
FADA survey stated that among its members, the current inventory of PVs ranges from 35-40 days, two-wheelers ranges from 55-60 days and CV ranges from 35-40 days.
President, FADA, Ashish Harsharaj Kale, said, “Customer interest is still healthy, indicating sales will come back in its previous growth trajectory sooner than later. As predicted during festival season data release, healthy customer inquiry level, coupled with stakeholders of the industry coming together and moving ahead in a cohesive manner, the auto industry will once again clock real growth close to double digits by the end of this FY.”