Auto Sales Continues to Drive in Fast Lane on Account of Low Base | CV Hits a New Peak of 8,56,000 Units

At F A D A, the mass movement has begun!

Dear Dealer Colleagues,

According to a recent report from Deloitte, India’s low trade-to-gross domestic product ratio, favorable demographics, high commodity imports and pro-reform government will shield it to a large extent should trade tensions escalate and lead to a global economic slowdown. The report also said that India has not reached its growth potential because the working age population is still growing – relative to the dependent population and the participation of women in the labour force is low. The Nikkei India Purchasing managers’ index for manufacturing — an indicator of industrial activity — rose sharply to 53.1 in June, the strongest since December 2017, supported by strong output and new orders in 2018.

The Indian household today is spending much more than what it used to spend a year back. Goods are moving out of retail outlets at a rapid speed. Companies are also borrowing more compared to a year back. After several months of rough weather, the Indian economy appears poised to change gears after fully recovering from the twin jolts of demonetization and GST. Auto showrooms have been reporting brisk activity, implying greater spending ability & growing income levels. 

In June, passenger vehicle (PV) sales grew at its fastest pace in a decade, with domestic sales of 2,73,759 units, up 37.5 per cent over last year. Most auto brands reported similar pattern in sales, implying the trend was more broad-based and industry-wide. India’s largest car maker, Maruti Suzuki, reported a 35% jump in sales in June at 1,43,181 units. Tata Motors sold 62,019 vehicles last month, up 54%, YoY.

I am excited to share that the mass movement at F A D A has begun. After Vyapar Patna in June, we concluded Vyapar Lucknow on July 18. It was heartening to see the dealer participation for the event. This was a first of its kind event in the state of UP and I am sure that dealers who participated reaped maximum benefits out of it as it allowed them to put their concerns in front of the administration is a right way and also gain knowledge on how the industry is progressing.

The 288th Council Meeting of F A D A was held during the day in the same venue. The Council deliberated on various issues with special focus on the State of Uttar Pradesh. 

Our next pit stop is Kolkata where we are organising Vyapar Bengal – Rising East. It will happen on 20th Aug’18 at Hotel The Lalit Great Eastern. I will request all our members from East and North East to register for the event in large numbers and make the event a roaring success. I can guarantee that there will be lots of sessions which will discuss how to effectively manage one’s dealership may it be on financial side or on employee and customer side! 

F A D A recently took part in World Auto Forum’s 3rd India Vehicle Sales & Marketing Summit as an Industry Partner. Apart from giving an overview on the new Avatar of F A D A, our speakers spoke on large number of issues including Marketing & Selling Vehicles 20 years back and now, Challenges & Opportunities in building Cult Brands and whether Auto Brand is built or killed at dealership and best practices.

We continue to press for lowering the GST on used car business and removing intra state E-Way bill for Auto Sector. Apart from these two issues, as I write, F A D A is also in process of taking up the issue on increase in permitted axle load of heavy vehicles and tractor trailers allowing fleet owners to carry more goods with the concerned ministry. Please be rest assured that we will leave no stone unturned for the benefit of our industry and our members at large.

With best wishes.

Yours sincerely,

John K Paul

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