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FADA (Federation of Automobile Dealers Association) has taken a great initiative of sharing the Retail (sale of cars from Dealership to End Customer) Data. This shall be the right way of looking at the Industry Performance as the Wholesale Data was deceptive as it used to reflect the dispatches of cars from OEM to dealer. As the Wholesale figures were primarily published; OEMs used to push cars to dealers to project growth in the sales volumes which used eventually lead to high inventory levels at dealerships if retail movement was slow. We appreciate FADA’s initiative and hope they shall be able to share model-wise retail data as well. The Industry-wise Retail Statistics for Dec’18 is as shown below:
Not a healthy scenario for the Auto Industry
MoM (Month on Month) Auto Sales have actually declined; vis-a-vis growth seen in the Wholesale Statistics
Liquidity a concern for the Auto Industry and is backed with negative consumer sentiment
Passenger Vehicle Sales was down by -7% in Dec’18 v/s Nov’18 and was -3% when compared to Dec’17. The PV Sales were down by 7% in FY18-19 vis-a-vis FY17-18! Indeed a much more tougher time for dealers rather than the OEMs as they shall be still carrying the stocks in their inventory.
2W sales were comparatively better and showed 11% growth in Dec’18 v/s Dec’17. However; there was a degrowth of -18% in Dec’18 v/s same period last year.