FADA issued registration data for February month of vehicles, signs of improvement in auto sales

Federation of Automobile Dealers Association (FADA) issued monthly registration numbers for vehicles for the month of February, 2019.

13th March, 2019

New Delhi: Federation of Automobile Dealers Association (FADA) today released monthly registration numbers for vehicles for the month of February, 2019. Regarding February figures, FADA President Ashish Harshraj Kale said, "In January, the increase in PV sales up to one month due to the end of the year and the stack clearance and enthusiasm for some newly launched vehicles in the industry. The reason was After this increase, the industry has once again turned negative, and during February this year, Auto has become one of the slowest months in retail. Automobile sales in India have been going down for a long time and the recession and negative growth in sales have been continuing for the last 6 months. The signs of improvement in this situation are also low in the near future.

Following the sharp increase in insurance expenditure in September, due to the many negative things in the last few months, the decision to purchase new vehicles has been taken forward and the demand for customers has been weakened. Auto dealers in the corner of the country have been very much stacked in all categories and the inventory of passenger vehicles and commercial vehicles has increased very much. There was a partial improvement in this situation in the last 2 months, but after that the situation came again in an uncertain position of November 2018. FADA is highlighting the 2-wheeler dealer's high level of accumulated inventory and is deeply concerned about the fact that the level of inventory has become a challenger and talk about today's retail situation, then in some places The stack has been deposited for more than 100 days. FADA President further said that FADA and the entire auto industry believe that the lack of demand is temporary and India will be one of the fastest growing auto markets in the world. Need to work smoothly in the current recession, and the entire auto environment and dealers will have to keep prices under control until the industry is restored.

In the past, due to the various elements and increased working capital, there has been a considerable increase in the amount of operational expenditure, this has happened at a time when the liquidity situation is very tight, the maintenance cost of this high inventory is high and additional expenses are unstable. In such a situation, due to the lack of demand, dealers have been required to reduce their inventory in March and April. In the current situation, FADA urges OEMs to keep the practical stack and OEMs in line with the current status of the retailer so that the dealer's invoice can be controlled in these 2 months and the stack may be back in normal condition for dealerships so that A continuous environment of business can be created and the industry is moving forward towards rapid growth.

Category: Business

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