ADITYA RAJ DAS / NEW DELHI
At the juncture when the Indian economy is showing worrying signs of slowdown there seems to be a marginal revival in demand cycle of country’s crucial auto industry.
In a positive sign for the auto industry, vehicle registration in October rose by 4 per cent on a year-on-year basis, largely on the back of festival demand, the latest data released by the Federation of Automobile Dealers Association (FADA) show.
Although the overall record was positive, registration of commercial vehicles registered a de-growth of 23 per cent. Registration of personal vehicles rose by 11 per cent in October, compared to a year-ago period and that of two-wheelers and three-wheelers were up 5 per cent and 4 per cent.
“October vehicle registrations finally show a positive momentum with the biggest two festivals of Navratri/Dussehra and Diwali being in the same month. Attractive offers boosted the overall positive mood of the buyers,” a FADA statement said.
The overall inventory also declined last month. The inventory of personal vehicles saw a marginal drop reaching the “ideal mark “, the statement said.
Average inventory for personal vehicles was in the range of 25-30 days, down from 30-35 days in September, and that of commercial vehicles to 40-45 days, from 50-55 days in the previous month.
Commenting on the performance, FADA President Ashish Harsharaj Kale said: “Personal Vehicle inventory, already at reasonable levels, has further reduced and now almost at the recommended level with all our principals taking strong and positive steps towards stock reduction. Commercial Vehicle inventory also reduces although with retails continuing to be weak, further wholesale regulation is required to reach FADA`s 21 days recommended levels.
“Heading into the unknown territory of BS-VI transition, more needs to be done towards inventory reduction to avoid dealer losses. October retails were in the positive, giving a much-needed respite to the auto industry, especially our dealer community, after months of de-growth,” he said. End/