Vehicle registrations rise by a modest 3 per cent in May
Vehicle registrations — a proxy for retail sales — went up by a modest three percent to 2.09 million units last month with consumers delaying purchases due to election-related uncertainties and extreme heat.
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Passenger vehicle registrations dipped marginally during the month under review by 0.96% to 303,358 units. As per data collated by industry body Federation of Automobile Dealers Association (FADA), two-wheeler registrations rose 2.48% to 1,534,856 units, three-wheelers by 20.09% to 98,265 units and commercial vehicles by 4.07% to 83,059 units. Registrations of tractors slid by 1.06% to 70,065 units in May.
Dealers are cautiously optimistic of market sentiments improving in the coming months driven by forecast of good monsoons and formation of a stable government. FADA President Manish Raj Singhania said, “Post-election results are expected to bring stability and improve market sentiment, while the formation of a continued government could boost infrastructure projects and economic activities.”
Dealers are hopeful about better supplies and positive movement in key sectors like cement, coal and iron ore. The India Meteorological Department (IMD) has forecast above-normal rains at 106% of the long-period average (LPA) this year, which is expected to enhance rural demand and support economic
