New Vehicle Registration Grew By 4 Per cent In October (Photo Credit: File Photo - PTI Image)
As the Indian auto sector faces the worst slump in decades, all the automakers are suffering from huge losses. However, the monthly vehicle registration for the month of October 2019 grew by 4 per cent, thanks to the festive season.
According to the Federation of Automobile Dealers Associations (FADA), last month the cumulative new vehicle registration grew by 4 per cent to 17,09,610 units, as against the 16,38,832 vehicles that were registered in October 2018.
In a report, FADA noted that the vehicle registration has finally shown some positive momentum driven by festive sales thanks to both Navratri/Dussehra and Diwali falling on the same month this year. Moreover, the attractive offers by carmakers and dealers also boosted the overall positive mood of the buyers.
FADA President Ashish Harsharaj Kale said, "October retails were in the positive giving a much-needed respite to the auto industry and especially our dealer community after months of de-growth. The Festivals saw very good footfalls at dealerships across most of the geographies, the consumer sentiment was positive, and purchase decisions were concluded as used to be during the growth years."
It is worth mentioning here that the passenger vehicle segment witnessed the highest growth in October 2019 at 2,48,036 units, a rise of 11 per cent, compared to the 2,23,498 units sold during the same month last year. Also, two-wheeler registrations grew by 5 per cent last month to 13,34,941 units, compared to the 12,70,261 vehicles that were registered in October 2018.
On the other hand, three-wheeler registrations grew by 4 per cent to 59,573 units, as compared to the 57,455 vehicles registered during the same month last year.
However, the commercial vehicle segment registered a de-growth 23 per cent in vehicle registration in October 2019, which came down to 67,060 units, compared to the 87,618 vehicles registered during the same month last year.
Interestingly, FADA further compared registration figures for the 42 days of the festive season for both 2018 and 2019, and this year vehicle registration saw a de-growth of 2 per cent. This festive season, the total vehicle registration stood at 24,17,756 units compared to the 24,72,436 vehicles registered during the 2018 festive period.