Car, two-wheeler registrations down 17.8% in Gujarat: FADA

AHMEDABAD: There has been a 17% decline in registrations of two-wheelers and passenger cars in Gujarat in May, according to the latest vehicle registration data, collated by the Federation of Automobile Dealers’ Associations (FADA). According to the figures from FADA, 1.11 lakh vehicles were registered in Gujarat in May 2019, against 1.35 lakh vehicles in May 2018. Experts attributed the slide to weak demand based on weakening consumer sentiment coupled with liquidity issues.

Registration of two-wheelers has been hit particularly hard.The data suggests that against registration of two-wheelers in Gujarat declined by 19%, going from 1.10 lakh in May 2018 to 89,504 in May 2019.
Passenger car registrations declined by 12.7% in May, with 21,929 registered in May 2019 against 25,127 in May 2018.
Pranav Shah, director of the Gujarat chapter of FADA, said, “Overall consumer sentiment is weak, as people are not making purchases readily. There is a liquidity crunch in the market which is preventing people from making purchases. Initially, we thought that sales are poor as people are holding their purchases due to the election results, however, even after the results were in line with market expectations, sales have failed to improve.”
Automobile dealers also said that the number of customers buying vehicles through financing options has also risen. “For four wheelers, some 90% of consumers are buying vehicles through financing options. The ratio of people buying two-wheelers through finance options has risen significantly, from 45% to 60%, over the last few months,” said a city-based dealer, on condition of anonymity.
Industry stakeholders also said that the automobile market has failed to revive since August 2018, despite festivals like Navratri, Dussehra, Dhanteras and the recent Akshaya Tritiya in May, which are all considered auspicious for vehicle purchases.