Auto stocks slip after weak FADA data

The Nifty Auto index slipped 0.76% to 10,427 after the auto body FADA said automobile registration in February 2021 declined compared with the same period last year.

Atul Auto (down 2.56%), Tata Motors (down 2.52%), Ashok Leyland (down 2.07%), Bharat Forge (down 1.64%), Hero MotoCorp (down 0.79%), SML Isuzu (down 0.76%), TVS Motor Company (down 0.6%), Bajaj Auto (down 0.37%) and M&M (down 0.3%) were top losers in automobile segment.

The Federation of Automobile Dealers Associations (FADA), apex national body representing automobile dealers in India, said that total vehicle registrations in February 2021 declined 13.43% to 14,99,036 units as against 17,31,628 units in February 2020

In February 2021, two-wheeler vehicle registrations were at 10,91,288 vehicles (down 16.08% YoY), three-wheeler vehicle registrations were at 33,319 vehicles (down 49.65% YoY), commercial vehicle registrations were at 59,020 vehicles (down 29.53% YoY).

However, the registrations of passenger vehicles stood at 2,54,058 vehicles (up 10.59% YoY) over the same month last year. FADA said growth in passenger vehicles was majorly due to low base of last year as India had started transitioning from BS-4 to BS-6 emission norms. Passenger vehicle waiting period continued to remain as high as 8 months as scarcity of semiconductors continued to linger around.

Meanwhile, tractor registrations jumped 18.89% to 61,351 units in February 2021 over February 2020.

Commenting on how February 2021 performed, FADA President, Vinkesh Gulati said, "Auto Registrations continued to fall in double digits by -13.43% YoY in the month of February. While Tractors maintained their outperformance compared to the broader market, Passenger Vehicles witnessed double digit growth on low base of last year as India started transitioning from BS-4 to BS-6 emission norms. This coupled with the global semiconductor outrage kept waiting period of PV as high as 8 months. FADA Survey showed that 50% PV Dealers lost 20% + sales due to non-availability of vehicles. Two-Wheeler continued to see sluggish demand as the new wave of Covid in certain states kept customers away. Enquiry levels also narrowed as many educational institutions were still reluctant to open. Fuel prices are at its historic high and has put a dampener in sentiments. This in-turn has pressed brake on sale of entry level price sensitive category. Overall CV segment continues to falter as availability of finance, negligible sales of passenger buses due to closure of educational institutes and supply side constraints kept the registrations in deep red. LCV's which saw good pent-up demand during last few months post unlocking has now started to fall flat. Tippers and HCV's are in-turn showing initial signs of revival as Government's infrastructure push has started creating its demand."

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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