The Nifty Auto index declined 1.06% to 8,263.80 after industry apex body FADA released vehicle registration data for the month of December 2019.
The Federation of Automobile Dealers Associations (FADA), the industry apex body for auto dealers, noted that after two months of positive sales during the festive period in October 2019 and its spillover effect in November 2019, automobile sales fell once again in December 2019.TVS Motor Company (down 2.13%), Mahindra & Mahindra (down 2.12%), Maruti Suzuki India (down 1.41%), Eicher Motors (down 1.3%), Tata Motors (down 1.26%), Escorts (down 1.25%), Hero MotoCorp (down 0.97%), SML Isuzu (down 0.51%) and Bajaj Auto (down 0.25%) were top losers in the auto pack.
Despite robust inquiries and with offers and discounts at its peak, customers did not conclude on their purchase as expected, showing continued weakness in consumer sentiment.
Total vehicle registration fell 15% to 16,06,002 units December 2019 as against 18,80,995 units in December 2018.
Passenger vehicle registration declined 9% to 2,15,716 units on year-on-year (YoY) basis. Two-wheeler sales stood at 15,00,545 units in December 2019 as against 12,64,169 units in December 2018, registering a decline of 16%.
Commercial vehicle (CV) space was the worst hit with a decline of 21% on YoY basis. CV registrations for December 2019 stood at 67,793 units as against 85,833 units in December 2018.
Three-wheeler segment witnessed a mere 1% growth to 58,324 units in December 2019 as against 58,031 in December 2018.
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With the December de-growth being the highest in current financial year, FADA shifted its stance to "very cautious" for the near and mid-term. It looks forward to demand spurring initiatives in the Union Budget for faster revival of the much needed sustainable growth.
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