December auto sales: Cars record best monthly growth this financial year
While for passenger vehicles it was the second-best monthly sale, for two-wheelers and commercial vehicles it was the best month in retail demand January 11, 2021 / 11:16 PM IST
December marked the best growth in retail sales of passenger vehicles (PV) as new launches, cheaper finance and pre-buying to escape the January price increases helped boost demand. The segment also recorded the second-best monthly total this financial year. PVs comprise cars, SUVs and vans
PV sales grew 24 percent in December to 271,249 units as against 218,775 units recorded in the same month last year, as per data sourced from 86 percent of the regional transport offices (RTOs), shared by the Federation of Automobile Dealers Association (FADA).
Delhi HC Judge Unhappy With AAP Govt s HSRP Push, Says More Time Should be Given
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The Delhi High Court has suggested to the AAP government to give more time to people to obtain colour coded fuel stickers and high security registration plates (HSRP) before it starts fining them Rs 5,500 for the violations. A bench of Justices Siddharth Mridul and Talwant Singh said the Delhi government should not create panic among the citizens which would make some people take advantage of the situation. The court also said that advertising the requirement for stickers and HSRP by the Delhi government in August this year was not the ideal time . The judges said that even they were clueless about the requirement of the stickers and asked additional standing counsel Satyakam to come with detailed instructions regarding steps taken by the Delhi government to publicise the stickers and HSRP.
Auto industry hopeful of turning the corner
December 28, 2020
Organisations need to assess the risk of their supply chain end to end - REUTERS×
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Auto players expect progress in the year ahead on the back of overall economic recovery
The year 2020 was one of the worst for the automobile industry, which suffered losses of more than ₹2,300 crore in turnover for every single day of closure. However, the industry is hopeful of some revival in 2021 on the back of overall economic recovery.
Owing to the complete nationwide lockdown to contain the spread of the coronavirus, the auto industry witnessed the steepest downturn in years. As per the Society of Indian Automobile Manufacturers (SIAM), during this period, domestic sales stood at 15 lakh units, resulting in a 75 per cent de-growth, compared with the corresponding quarter last year.
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The sales of domestic commercial vehicles (CVs) could take longer to recover than expected, despite the improving macro-economic indicators such as index of industrial production (IIP), output of core industries and fuel consumption. This is primarily due to the spare capacities created in the system, driven by the peak sales achieved during FY18-19 and implementation of revised axle load norms coupled with reduced fleet utilisation, says a research note.
In the report, India Ratings and Research (Ind-Ra) says, Medium & heavy commercial vehicle (MHCV) sales could decline by 35%-45% year on year (yoy) in FY20-21, though light commercial vehicles (LCV) sales decline is likely to be contained within 20%-25% yoy. In FY21-22, the industry could see sales growth in double digits, especially due to the low base of FY20-21. Nevertheless, the industry could revive earlier if an assertive scrappage policy is introduced timely.