The Federation of Automobile Dealers Associations (FADA) has released vehicle registration data for the month of February 2019. The latest figures indicate a downward trend.
The month of February saw vehicle sales drop making it one of the slowest months of FY2018-19. All vehicle segments saw a downward turn during this month. The total number of vehicles sold during the month of February 2019 was down 8.06% compared to last year and saw a 15.03% decline vis-a-vis January 2019.
2-wheeler sales dropped by 7.97% compared to the same month last year and sales dropped by 13.45% compared to January 2019. The personal vehicle segment registered the highest Month-on-Month change. Sales dropped by 28.62% compared to January 2019. Also, car sales were down 8.25% compared to February 2018.
The 3-wheeler segment also saw a 10.32% decline compared to the same period last year. Commercial vehicle sales registered a Month-on-Month growth of 4.92% but compared to the same period last year, sales were down 7.08%.
Vehicle sales have been on a decline ever since the government hiked the insurance costs in September 2018. The effects of this along with other factors is evident from the latest data. According to FADA, the current inventory levels of personal vehicles is 50-60 days, while that of 2-wheelers is 80-90 days. The inventory levels of commercial vehicles ranges from 45-50 days.
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