New Delhi: Vehicle registrations across the country declined by more than 7 per cent in January year-on-year due to continuing weak consumer sentiment, the Federation of Automobile Dealers Associations (FADA) said on Thursday.
Auto sales continue to be in the negative territory except for three-wheelers with many consumers still not concluding on their decisions, said FADA President Ashish Harsharaj Kale.
“The ongoing transition of BS-IV to BS-VI is also a factor in delayed purchase decision. Overall weak economic sentiment continues and even the Budget 2020 did not have any direct measures nor any immediate growth-spurring initiatives for the auto sector,” he said in a statement.
Two-wheeler registrations totalled 12.67 lakh last month compared to 13.89 lakh in January 2019, marking a fall of 8.82 per cent.
But three-wheeler registrations gained by 9.17 per cent with 63,514 registrations in January 2020 compared to 58,178 in the year-ago period.
However, passenger vehicle registrations edged lower by 4.61 per cent to 2.9 lakh from 3.04 lakh in the year-ago period.
Commercial vehicles too witnessed a drop of 6.89 per cent to 82,187 registrations versus 88,271 in January 2019, data released by FADA showed.
That took overall vehicle registrations to 17.5 lakh in January 2020, down 7.17 per cent from 18.85 lakh in January 2010.
Kale said the past 14 months has seen one of its toughest times in auto sales. “With continued weak consumer sentiment and overall economic situation as well as upcoming BS-VI transition, the near-term demand situation will continue to be dynamic,” he said.
FADA India represents over 15,000 automobile dealers having 25,000 dealerships including 30 associations of automobile dealers at the regional, state and city levels accounting for 90 per cent of market share.