Car market continues to move in the slow lane

Automobile sector

Dim outlook for India’s automobile sector is likely to continue well into 2019 as unsold vehicles swelled, while new car registrations saw a decline in Q3, according to Target Investing

552,616 vehicles per month – Average dealer inventory during October to December 2018

275,522 vehicles per month – dealer inventory during the same period a year earlier

68% – rise in dealer inventory for cars during Oct-Dec 2018

113% – jump in unsold stock of two-wheelers

11.7% – fall in car registrations

4.3% – slide in three-wheelers registrations

9.8% – drop in two-wheeler registraions

1% – drop in overall production in December 2018

A shift to stricter emission norms for vehicles and dealer financing will be two major events that may impact production going forward