Car Sales Fall 17% in October

Retail automobile sales in India plummet in October. Increase in insurance premiums and high fuel prices in a slowing economy have roiled consumer sentiment. During the month, vehicle registrations declined by 17% compared to the preceding month, despite festivals such as Dussehra and festive discount. Till 29 October, about 1.15 million vehicles were registered. If we take no. of vehicle registered till 29th October, it is dip by 35% compared to October, 2017. Data taken from Vahan, the vehicle registration website of the union government.

“In the last two months, the situation has changed for the worse, given that higher interest rates and insurance premium have increased the cost of ownership, while fuel prices have also raised operating costs for consumers,” said Anil Sharma, associate director at MarketsandMarkets, a market research firm

In most parts of northern, western and eastern India, where Durga Puja is a major festival, vehicle registrations slumped in October. Surprisingly Gujarat topped the chart with an 85% drop, followed by 37% in West Bengal, 23% in Uttar Pradesh and 22% in Haryana. Maharashtra saw a 13% fall, although new registrations rose 2.7% in Delhi. These numbers are a setback to the auto industry, given that September was already a dull month, with sales falling during Shradh, an inauspicious period for buying new goods. The drop in October does not spell good news for automobile sales for the remainder of this fiscal.

Month-on-month change: 17.19%

Year-on-year change: 35.44%

October 2018

Vehicle Registration: 11,52,266

September 2018

Vehicle Registration: 13,91,400

October 2017

Vehicle Registration: 17,84,868

Sourrce: Vahan