FADA Says Domestic PV Retail Sales Down 11% In July, However, Overall Vehicle Sales Up On Monthly Basis

Automobile dealers' body Federation Of Automobile Dealers Association (FADA) stated in a monthly update today that the retail sales of passenger vehicles (PV) in July dropped by 11% to 2,43,183 units against the same period last year. FADA released its July'19 Vehicle Registration Data and noted that sales continue to be negative YoY, but noted that some hope is building up for the Festive Season with Monsoon Revival. It also stated that improving liquidity and serious intervention and action expected from government could lead to demand improvement.

For the month of July and on YoY basis, Overall sales continued to be negative at -6% with 2W at de-growth of -5%, PV by -11% and CV at -14%. Positive Growth was seen on a MoM basis, with overall sales up by 5% as June'19 had the 2nd lowest Volume base this CY after February. Postponement of demand was seen in June due to deficient rainfall concluded in July, after onset and even spread of monsoon, and slight Liquidity improvement seen towards July end in Banking system also contributed towards this MoM uptick in Sales.

PV inventory levels reduced further and came closer to FADA's proposed 21 days inventory.CV inventory continues to be at High levels. Very Slight reduction seen in 2W inventory Levels and they continue to remain at very high levels and a serious cause of concern for Dealers. FADA noted that the Finance Minister meeting with Auto Industry, followed by immediate action on retail lending push for Banks and NBFC coupled with a Revival of the Monsoon has built positive hope amongst the dealers for festive season.

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