Car sales up 4% in Nov. on festival demand

Passenger vehicle (PV) retail sales in November reported a year-on-year rise of 4.17 per cent to 2,91,001 units, as the Diwali-Dhanteras period led to a spike in vehicle registrations in Asia’s third biggest economy, the Federation of Automobile Dealers Associations, or Fada, said on Tuesday.

Fada, which collected vehicle registration data from 1,265 out of the 1,472 regional transport offices (RTOs), said PV sales stood at 2,79,365 units in November 2019.

However, two-wheeler sales dropped 21.4 per cent to 14,13,378 units last month compared to 17,98, 201 units in Nov. 2019.

“While registrations during Navratri were tepid, people came out in good numbers to purchase their dream vehicles during the Dhanteras-Diwali period,”

Fada president

Gulati said.

New launches, especially compact SUVs, continued to show good demand in the PV segment, he pointed out.

The two-wheeler segment continued to witness a shift from 100cc to 125cc and above category due to good harvesting coupled with Dhanteras-Diwali and marriage season, Gulati said.

Commenting on small goods commercial vehicles, he said the segment continued to see good demand with increased level of transportation and last-mile connectivity needs.

With schools and colleges continuing to remain

Vinkesh closed, demand remained weak.

Similarly, the medium and heavy commercial vehicle (M&HCV) segment continued to play spoilsport with excessive capacity, high prices of BS-VI models, finance issues and high fuel price, Gulati noted.

“Fada once again urges the government to increase infrastructure spending, including timely payment to vendors and introduce attractive incentive based scrappage policy to revive the M&HCV segment,” he said.

On sales outlook, Gulati said with the festive season coming to a close, demand revival now solely depends on year-end schemes.

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