FADA confirms reasons for decline in sales
Although the automobile sector is on a constant moving towards innovations and developments there was decline in the retail sales reported. According to the Federation of Automobile Dealers Associations of India (FADA) the domestic automobile retail sales suffered a decline of 11 percent this year. The reason for this decline is supposedly the downfall in the off take of two-wheelers and passenger vehicles even during the festive season.
FADA, after calculations, stated that during the festive period, the total registrations that dropped between October 10 and November 20 201, were 20, 49,391 units. However, the scenario being better last year, there were 23, 01,986 units registered during the period between September 21 and November 1. The FADA president Ashish Harsharaj Kale shared his comments on the festival sales saying that by the end of October, fuel prices started a downward trend owing to which the Diwali season witnessed an upscale in sales, predominantly in the two-wheeler segment. Despite this, they witnessed a decline during the festive period. He further added that the inventory levels in passenger vehicles and two-wheeler vehicle segment rose considerably which has raised a great matter of concern.
According to Kale, the current non-banking finance company (NBFC) liquidity issue has also added to the concerns for all automobile segments such as commercial vehicle segment and two wheeler segment. FADA is hopeful that the liquidity measures taken by the government and RBI would place the Auto NBFCs and banks to ensure continued support to auto retail.