India Vehicle Registrations' Weakness Likely to Persist: Target

 

By Nupur Acharya

(Bloomberg) --

 

Total automotive registrations in the 30 states and union territories of India dropped 9% in the October-December period, relative to comparative quarter in 2017, Mumbai-based Target Investing writes in note.

 

Car registrations were down 11.69%, two-wheelers fell 9.84% and three-wheelers -4.27%, it says

“This is the first quarter in past eleven quarters where total registrations have shown de-growth,” says Sameer Kalra, founder and equity research analyst at Target. “This is seasonally low-demand quarter for cars as the model year changes, which reduces the resale value, but we expect this trend to continue.”

 

Only “silver lining” was commercial-vehicle registrations, up 10.22% For December month alone, total vehicle registrations were up 11%, led by 17% increase in commercial vehicles; both car and three-wheeler registrations were marginally down

 

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Nupur Acharya in Mumbai at nacharya7@bloomberg.net

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