Carmakers and dealers have a lot to cheer, as YoY sales growth has turned positive after several months. A total of 2,66,147 PVs were sold across the country in October, which translates into YoY growth of 18.82%. Sales during the same period last year stood at 2,23,995 units. Federation of Automobile Dealers Associations of India (FADA) is relieved and happy to see the significant improvement in sales during festive season.
Among states and UTs, maximum PV sales came from Maharashtra. A total of 35,646 units were sold, which translates into YoY growth of 12.30%. At number two is Gujarat with sales of 28,800 units. YoY sales have improved by 8.96%, as compared to October last year when 26,432 units were sold. Uttar Pradesh takes the third spot with sales of 24,168 units in October 2019. YoY growth has improved by 7.36%, as compared to 22,511 units sold in October 2018.
Karnataka and Rajasthan take the fourth and fifth place, with sales of 20,017 and 18,758 units, respectively. While Karnataka has registered 4.35% growth, Rajasthan has done much better at 25.04%. Other states in the top 10 list include Kerala at sixth place with sales of 18,111 units, followed by Delhi (17,335), Tamil Nadu (15,439), Haryana (13,606) and Punjab (10,807).
With the exception of Tamil Nadu that has registered de-growth of -12.35%, rest all top 10 contributing states have registered positive YoY growth. Overall, around 70% of states and UTs have registered positive YoY growth in October 2019. The ones with negative growth include West Bengal (-21.43%), Uttarakhand (-2.24%), J & K (-51.83%), Puducherry (-22.42%), Nagaland (-3.99%), Manipur (-8.11%), Sikkim (-0.22%) and D & D (-1.47%).
Speaking about October sales, FADA said that PV dealerships have reported positive consumer sentiments in most parts the country. Footfall at dealerships has increased and overall response is similar to that of high growth years. With easing liquidity, banks and NBFCs also helped boost sales by providing easy finance options to customers. FADA is hopeful that demand will strengthen in the coming months, as the period of de-growth has bottomed out.
Another positive development for car dealers is that average inventory has reduced to 25 – 30 days from 30-35 days in September 2019. This is quite close to FADA recommended 21 days of average inventory.
FADA’s prediction for near term is stable, as economy shifts gears to recovery and consumer sentiments improve further. However, FADA has advised stakeholders to tread cautiously in view of the current economic situation and BS-VI transition. FADA said that it will provide the necessary help to all stakeholders to ensure a seamless transition to BS-VI.